U.S. President Donald Trump announced that he would impose tariffs on steel products from all countries, prompting the government to pay close attention to whether South Korea will be affected. Some within the government cautiously predict that South Korea, which is a 'tariff-free quota country', may escape the tariff targets.
According to major foreign press reports on the 10th, President Trump announced the day before (local time) that he would impose a 25% tariff on steel and aluminum. This is the first instance of tariff measures targeting all countries simultaneously since the start of Trump's second administration.
Among South Korean companies exporting steel to the U.S., many have established operations locally, including Hyundai Motor and LG Electronics. If tariffs are imposed on Korean steel products, it could lead to a chain reaction of burdens in the automotive and electronics sectors.
Currently, South Korea is applying '2.63 million tons' of tariff-free quota for its exports of steel to the U.S.
During Trump's first administration, the U.S. imposed a 25% tariff on imported steel products. South Korea was nearly designated as a tariff target country, but through negotiations, a system of volume allocation (absolute quota system) was introduced. This led to a solution that allows for tariff-free benefits in exchange for reducing export volumes.
In response to President Trump's tariff announcement, the Ministry of Trade, Industry and Energy held an emergency meeting with corporate representatives from the steel industry at the Korea Steel Association in Songpa-gu, Seoul, at 3:30 p.m. on the same day to discuss countermeasures.
The government plans to mobilize all networks available, including the embassy in Washington, to determine the specifics of the U.S. actions.
Some within the government are expressing hopes that South Korea will not actually be included in the U.S. tariff imposition targets. President Trump has indicated that he would impose equal tariffs corresponding to those set by counterpart countries, and since South Korea does not impose tariffs on most U.S. products due to the Korea-U.S. Free Trade Agreement (FTA), there are expectations of exemption.
A government official said, "Due to the Korea-U.S. FTA, most tariffs on U.S. products have been eliminated except for some agricultural products," adding, "There is also a possibility that South Korea could be entirely omitted from (the U.S. tariff targets)." However, he noted, "It is not yet clear what the criteria for the tariff measures are, so it is necessary to keep watching."