The Donald Trump U.S. administration announced that it will impose a 25% tariff on all imported steel and aluminum products starting from the 12th, prompting financial authorities to begin checking the domestic steel industry risks.
On the 11th, financial authorities assessed the financial status and risk factors of the steel industry, focusing on POSCO and Hyundai Steel, a day before the Trump administration's tariff imposition, and found no major issues.
Financial authorities plan to examine the risks of industries under the comprehensive tariff and subsidies pressure from the Trump administration, including the semiconductor and automotive industries.
Currently, South Korea is applying for a '2.63 million ton tariff-free' quota for steel exports to the U.S., which was negotiated when the U.S. imposed a 25% tariff on global steel products under Section 232 of the Trade Expansion Act during Trump’s first term in 2018. In exchange for reducing the export volume to 70%, South Korea received the tariff-free benefit.
However, starting from the 12th, the tariff-free quota will cease, and a 25% tariff will be applied to the entire export volume to the U.S. According to the Korea International Trade Association, the U.S. accounted for about 13% of South Korea's total steel exports last year.