Seoul
South Korea will launch a 400 billion won ($290 million) export guarantee program to support its steelmakers facing steep U.S. tariffs, Industry Minister Kim Jung-kwan announced on Friday. The plan was shared during a meeting with executives of major steel firms, including POSCO, in Pohang.
The United States first imposed 25 percent tariffs on steel and aluminum under President Donald Trump’s administration, later doubling the rate to 50 percent in June. These measures have dealt a heavy blow to South Korean steel exports, which fell more than 25 percent year-on-year in July.
Kim said the program, backed by government agencies, financial institutions, and policy lenders, will help stabilize supply chains and provide economic support equal to about 400 billion won. He pledged to continue talks with Washington to seek tariff relief while promising follow-up measures to protect the industry and prevent unfair imports.
The South Korean government will also work with the National Assembly on legislation to strengthen the steel sector and cushion regional economies hit by the downturn.
Washington’s trade policies have wider implications for South Korea’s economy. The Bank of Korea estimates the tariffs will reduce the nation’s growth rate by 0.45 percentage points this year.
After lengthy negotiations, Seoul and Washington reached a deal in July, under which the U.S. agreed to cut tariffs on South Korean steel to 15 percent, down from 25 percent, in return for a $350 billion Korean investment pledge in the U.S. Even so, the Bank of Korea warned that tariff effects are expected to worsen in the coming months.
