New Delhi [India], June 3 (ANI): South Korea, the fourth-largest steel supplier to the US, is likely to face a severe blow from the US decision to double tariffs on imported steel and aluminium from 25 per cent to 50 per cent, starting Wednesday.
As reported by the Korea Herald, Trump described the move as a deal that would “secure” the American steel industry, one that “nobody’s going to get around.”
As per government data, in 2024, exports to the US accounted for 13 per cent of Korea’s total steel exports.
An industry insider told Korea Herald, “At a time when exports to the US are barely holding up following the 25 per cent tariff, an additional 25 per cent will severely undermine the competitiveness of Korean companies.”
In response to the US decision to raise tariffs to 50 per cent, Korean trade officials and steelmakers, including Posco Holdings and Hyundai Steel, held an emergency meeting on Monday, convened by the Ministry of Trade, Industry and Energy in Seoul to assess the fallout.
According to a Seoul-based market researcher at Daol Investment & Securities, even after the initial 25 per cent tariff, US prices for hot-rolled steel remained high. “The full impact of the new hike depends on how much US steel prices rise in response,” the researcher said.
That, in turn, may increase the competitive edge of companies like Hyundai Steel. The company is committed to a USD 5.8 billion investment plan to build an electric arc furnace-based integrated steel mill in Louisiana by 2029, in partnership with Posco Group.
Recently, the US President, Donald Trump, endorsed US Steel’s USD 14 billion acquisition by Japan-based Nippon Steel, a deal he had previously opposed on national security grounds.
And he said the partnership would create and save more than 100,000 jobs while keeping the American steelmaker under US control, though few details have been disclosed. (ANI)
Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News
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