South Korea’s acting President Choi Sang-mok announced plans to seek talks with the US administration over Washington’s 25% tariffs on steel and aluminium imports. The tariffs, set to come into force in March, are expected to reduce US demand for steel and erode profitability among exporters.
The move comes as CEOs of major South Korean conglomerates plan to visit the US in the near future, aiming to build close ties with President Donald Trump’s administration. Trade Minister Cheong In-kyo stated that while tariffs may harm Korean companies’ interests, they could also create opportunities for new export markets.
South Korea is the fourth-largest exporter of steel to the US and has historically enjoyed a duty-free quota under an agreement reached in 2018. This exemption made South Korea the first US ally to secure indefinite relief from steel tariffs.
Citi estimates that the latest US tariffs will have a negative impact on South Korea’s economy, with potential losses ranging from 0.11% to 0.22% of gross domestic product. European Union trade ministers are set to discuss their response to impending US tariffs in an unscheduled video conference.
Source: https://www.reuters.com/markets/asia/south-korea-trade-minister-says-trump-steel-tariffs-hit-companies-profits-2025-02-11