First Trump tariffs hit Korea, targeting steel and aluminum

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First Trump tariffs hit Korea, targeting steel and aluminum

Published: 12 Mar. 2025, 18:24

JIN EUN-SOO
[email protected]

Audio report: written by reporters, read by AI

Steel products are stacked at Pyeongtaek Port on March 12, awaiting shipment. [NEWS1]

Korea will now face a 25 percent tariff on exports of steel, aluminum and derivative products made of metal to the United States as the existing quota system is removed under U.S. President Donald Trump's new trade measure.

The new policy, which Trump signed Feb. 10, took effect Wednesday.

It marks the first across-the-board tariff measure from the second Trump administration to be imposed on all countries, without exemptions, and also the first time Korea has been directly impacted from a slew of trade measures announced by the administration.

During his first term, Trump had levied a 25 percent tariff on steel imports and 10 percent on aluminum.

Korea, however, was exempt from that tariff after agreeing to an annual duty-free steel quota of some 2.6 million tons under its FTA.

The second Trump administration, however, removed previous exemptions, including those of Korea, Mexico, Canada, the European Union and Japan, and instead imposed a sweeping 25 percent tariff.

It also expanded the tariff to apply to some 253 derivative products made of steel and aluminum.

Some 166 of the 253 products, including bolts, nuts and springs were hit with a 25 percent tariff starting Wednesday.

Tariffs on the remaining 87, including automotive components such as bumper and suspension as well as aviation and home appliance components were originally deferred until the U.S. Commerce Department announces further measures.

On Tuesday, however, U.S. Customs and Border Protection posted to its website that the 25 percent tax would immediately levied on 87 of them, along with other items based on their value.

Korea's Ministry of Trade, Industry and Energy said it would keenly monitor the situation, since it has not been officially announced by the White House, and will help small- and medium-sized enterprises from Korea cope with the new tariff measures.

According to data from International Trade Administration under the U.S. Commerce Department, Korea exported $2.9 billion worth of steel to the United States last year, accounting for nine percent of the total. Canada was the biggest exporter with $7.1 billion, accounting for 23 percent, followed by Mexico with $3.5 billion and 11 percent.

The United States accounts for approximately 13 percent of Korea's steel exports, according to data from Korea International Trade Association.

Industry sources project that the latest tariff measure could benefit Korea since it no longer has the export quota, allowing it to compete with other steelmakers solely based on quality and technology.

Meanwhile, Trump is set to enforce reciprocal tariffs on U.S. trade partners starting April 2. Ahead of the implementation of the reciprocal tariffs, the Korean government plans to deliver its stance to the U.S. with Trade Minister Cheong In-kyo taking off for Washington later this week.

BY JIN EUN-SOO [[email protected]]