Washington: The White House has declared that a 25 percent tariff will be implemented on all steel imports from South Korea, Japan, the European Union, and various other countries starting March 12. This announcement was made in a proclamation signed by U.S. President Donald Trump, who has decided to apply the tariffs on steel and aluminum imports without any exceptions or exemptions.
According to Yonhap News Agency, beginning March 12, steel articles and derivative steel articles from Argentina, Australia, Brazil, Canada, EU countries, Japan, Mexico, South Korea, and the United Kingdom will be subjected to this tariff. This decision is aimed at addressing the increasing share of steel imports from these sources, which the U.S. administration believes could impair national security, as stated by President Trump.
In 2018, Trump imposed a 25 percent tariff on all steel imports citing national security, but at that time, certain countries were granted exemptions or duty-free quota arrangements. South Korea, for instance, was allowed a waiver in exchange for a yearly quota of 2.63 million tons of steel exports to the U.S. However, Trump has now declared that the arrangements with these countries have not provided effective, long-term solutions to the national security threat posed by these imports.
This significant tariff increase has raised concerns about its impact on South Korea's exports, which play a crucial role in the country's economy. In response, South Korea's acting President Choi Sang-mok led a meeting with top government officials to evaluate the potential consequences of the new U.S. tariffs and discuss possible responses.
Last year, South Korea exported 28.35 million tons of steel products, with 2.77 million tons going to the U.S., as reported by the Korea Iron and Steel Association. South Korea, along with Canada, Mexico, and Brazil, is among the top exporters of steel to the United States.