Washington: U.S. President Donald Trump announced plans to increase tariffs on foreign steel imports to 50 percent, a move set to take effect next week. This decision further complicates the global steel industry landscape, affecting manufacturers worldwide.
According to Yonhap News Agency, Trump made the announcement on the social media platform X, stating, "We are going to be imposing a 25% increase. We're going to bring it from 25% to 50%-the tariffs on steel into the United States of America-which will even further secure the steel industry in the United States." This tariff hike is part of Trump's broader trade policy aimed at reducing trade deficits and promoting domestic manufacturing.
The existing 25-percent tariffs on most steel imports were implemented in March as part of this strategy. Recent data showed a significant impact on international steel exporters, with Seoul's steel exports to the U.S. declining nearly 19 percent in March compared to the previous year. U.S.-bound shipments from South Korea totaled $340 million in March, down 18.9 percent from the same month last year.
The complexity of the steel trade, often involving transactions planned months in advance, makes it challenging to fully gauge the tariffs' impact on South Korean exports. However, Korean steelmakers are already considering strategic responses. Hyundai Steel Co., for instance, plans to invest $5.8 billion in building an electric arc furnace-based steel mill in Louisiana by 2029, marking its first production facility outside South Korea.