South Korea has announced plans to tighten its oversight of metal imports, aiming to shield local producers from the potential impacts of a new round of U.S. tariffs on steel and aluminum. This move follows U.S. President Donald Trump’s decision to impose a 25% tariff on global steel and aluminum imports, a step that could disrupt the market for metal products worldwide.
As a key player in Asia’s metal production industry, South Korea did not immediately retaliate against the tariffs, which took effect on Wednesday. Instead, the South Korean government dispatched its trade minister to Washington to expedite discussions with U.S. officials. Seoul has also committed to introducing supportive measures for its domestic companies by the end of this month.
The newly implemented tariffs build on previous trade policies introduced during Trump’s first term but extend the reach of duties, removing exemptions for several countries, including South Korea. The move also introduces new product categories under tariff restrictions, amplifying concerns among steel producers globally. With worldwide steel demand already facing uncertainty, these tariffs could exacerbate the oversupply issue, intensifying pressure on producers and governments alike. In response, Taiwan launched an anti-dumping probe into certain Chinese steel products earlier this week, highlighting increasing global scrutiny on metal trade.
To address these challenges, South Korea’s Minister of Industry, Ahn Duk-geun, convened a meeting with business leaders on Thursday, where they discussed strategies to enhance their collective response to U.S. tariffs. Ahn urged local companies to maintain open communication with U.S. stakeholders and provide real-time updates to the government about ongoing discussions.
In a statement, the Ministry of Trade, Industry, and Energy revealed that the government plans to devise a countermeasure to tackle unfair imports, focusing on improved monitoring and efforts to prevent circumvention of the tariffs.
On the same day, South Korea’s Acting President, Choi Sang-mok, held a meeting with top policymakers, urging them to prepare for potential market disruptions caused by the U.S. tariffs. His office emphasized Choi’s call for intense negotiations with the U.S. and his directive to ensure that an influx of steel products—previously destined for the U.S. market—does not destabilize South Korea’s domestic steel industry.
The new U.S. tariffs have sparked tensions between the two nations, particularly after Trump recently criticized South Korea for having higher tariffs on U.S. products than China, citing subsidies for chipmakers like Samsung Electronics. However, South Korea has strongly denied the claim, pointing to a low effective tariff rate of 0.79% on U.S. imports, which is a result of the free trade agreement between the two countries that took effect in 2012.
This week, South Korea’s trade minister will meet with U.S. counterparts in Washington to discuss the ongoing trade tensions. As Asia’s fourth-largest economy, South Korea’s heavily export-driven market remains highly sensitive to international trade dynamics, with its largest corporations deriving a significant portion of their revenue from overseas markets.
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