South Korea's steel industry faces tariff pressure, plans overseas expansion
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Update time : 2025-02-17 18:43:13
During Trump's first term in office, a 25% tariff was imposed on imported steel. South Korea negotiated an annual tariff-free export quota of 2.63 million tons. However, since the quota system was implemented, South Korea's annual steel exports to the US have decreased by about 1 million tons, which has also led to the closure of five factories by Hyundai Steel and Posco.
On February 10, 2025, the US imposed a 25% tariff on all imported steel. This policy has put the South Korean steel industry in a state of high tension, which will not only weaken the price competitiveness of South Korean steel in the US market but also put it at a disadvantage in the competition with domestic and Japanese steel companies in the US.
Currently, South Korean steel companies are studying to expand investment in the US and other regions or increase production in the US to mitigate losses. However, it may lead to further reductions in domestic production and jobs in South Korea, and even trigger the risk of a long-term slowdown in economic growth. How the South Korean steel industry adjusts its pace in the global trade situation will become the key to future development.
