South Korea to ready response plan for US steel tariffs by March end

South Korea will prepare measures by the end of March to respond to the US tariff of 25% on all steel imports, the Ministry of Trade, Industry and Energy said March 13.

The South Korean government will "prepare measures to overcome internal and external risks in the steel industry, including the US steel tariff measures ..." according to Ahn Duk-Geun, minister of trade, industry and energy.

Ahn traveled to the US on March 1 to advocate for an exemption from the tariffs and discuss cooperation in energy and shipbuilding.

The ministry noted that in 2018, the US had imposed a 25% tariff on all steel imports under Section 232 of the Trade Expansion Act. However, South Korea obtained a tariff-free steel export quota of 2.63 million mt per year.

South Korea supplied 2.55 million mt of steel to the US in 2024, up 6.5% on the year, making South Korea the fourth largest supplier to the US last year, data from the US Department of Commerce showed.

On Feb. 10, the US announced the termination of the Section 232 quota system for steel imports from South Korea, which took effect on March 12, when the 25% tariffs were reimposed.

"As a result, [South] Korean steel imports into the US will be subject to a 25% tariff under Section 232," the ministry said.

Ahn met with representatives of South Korea's steel industry on March 13 and said that the government would continue to respond through high-level exchanges.

Unfair trade

At the same time, Ahn also addressed concerns about the inflow of cheaper steel products.

"We are concerned that unfair trade attempts will become more frequent, and the government will respond decisively," Ahn said.

"In particular, we are strengthening our trade defense capabilities, such as bypass dumping and monitoring imported goods against unfair imports," he said.

Already, on March 4, South Korea started an antidumping investigation into hot-rolled products of carbon steel or alloy steel from China and Japan. The probe followed the levying of provisional antidumping duties on hot-rolled steel plates from China.

"The government will synthesize the industry's opinions and reflect them in the steel trade and unfair import response plan in March," the ministry said.