S. Korea in close talks with local industries for response to US steel tariffs

Seoul

South Korea's industry ministry said on Tuesday it is closely communicating with local businesses and industry leaders to devise ways to minimize the impact from new U.S. tariffs on steel and aluminium imports that will inevitably affect local manufacturers and exporters.

The Ministry of Trade, Industry and Energy held an emergency meeting with officials from the Korean steel industry to assess the possible impact the U.S. tariffs may have on local businesses, according to ministry officials. Earlier in the day, U.S. President Donald Trump signed proclamations to impose 25 percent tariffs on all steel and aluminium products coming into the United States starting on March 12, reports a news agency. The announcement sparked concerns South Korean companies could be directly influenced by the anticipated U.S. tariffs, unlike the Trump administration's previous move to impose tariffs on Canadian, Mexican and Chinese goods. South Korea was the fourth-largest exporter of steel to the United States last year, accounting for some 11 percent of Washington's steel imports, according to data from the U.S. International Trade Administration.

The country was also the fourth-biggest exporter of aluminium to the U.S., taking up about 4 per cent of its aluminium imports. Trump had imposed a 25 per cent tariff on all steel imports to the U.S. in 2018, citing national security concerns. At the time, the U.S. waived the tariffs on South Korean steel products in return for a yearly import quota of 2.63 million tons, which accounted for about 70 percent of Seoul's average export volume between 2015 and 2017.