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Posco Holdings' Q2 net profit plunges 85.5% on U.S. tariffs, weak global demand

Published: 31 Jul. 2025, 16:43

This undated file photo shows Posco Holdings' No. 1 blast furnace, right, and No. 2 blast furnace at its integrated steel mill in Pohang. [POSCO]

Posco Holdings, Korea's leading steelmaker, said Thursday that its second-quarter net profit plunged 85.5 percent from a year earlier, hurt by steep U.S. tariffs and sluggish global demand.

For the three months ending June 30, net profit tumbled to 80 billion won ($57.6 million) from 550 billion won a year earlier, the company said in a regulatory filing.

"The bottom line was impacted by U.S. tariffs, soft demand for steel products and rising protectionism," a company spokesperson said.

The United States currently imposes a 50 percent item-by-item tariff on all steel and aluminum imports.

In last-minute talks held just a day before the Aug. 1 deadline, Korea reached a trade agreement with the United States that lowers tariffs on imports — including automobiles — from 25 percent to 15 percent.

However, the agreement does not cover steel and aluminum products. The deal also includes a commitment by Korea to invest $350 billion in the United States.

Operating profit declined 18.7 percent to 610 billion won in the second quarter from 750 billion won a year ago. Sales fell 5.1 percent to 17.56 trillion won from 18.51 trillion won over the same period.

"Decreased equity gains from affiliates in rechargeable battery materials, such as Posco Future M, also weighed on earnings due to rising operating costs and a decline in lithium prices amid the prolonged slowdown in the electric vehicle (EV) sector," the spokesperson added.

In the first half of the year, net income fell 63.5 percent to 420 billion won from 1.15 trillion won in the same period last year.

Yonhap