South Korea Faces U.S. Tariff Challenge: Navigating Steel Trade Tensions

South Korea's Industry Ministry intends to address the impending 50% U.S. tariffs on steel through trade talks. President Trump's tariff hike affects major steel exporters, impacting South Korean steelmakers' shares. South Korea, a key U.S. ally, seeks exemptions during negotiations, but faces challenges amid political uncertainties.

South Korea's Industry Ministry announced on Monday its strategy to tackle the proposed 50% tariffs on steel products by the United States as part of trade negotiations. The goal is to minimize potential adverse effects on its steel industry.

This follows President Trump's declaration last Friday to double tariffs on imported steel and aluminum to 50%, intensifying the trade conflict and putting additional pressure on global steel producers. The ministry conducted an emergency meeting with top officials from leading steel manufacturers like POSCO and Hyundai Steel.

On Monday, the stock value of these steelmakers dipped, with POSCO and Hyundai Steel shares dropping by 3% and SeAH Steel Corp falling by 6.3% respectively. As the fourth-largest exporter of steel to the U.S., South Korea is appealing for tariff exemptions, especially with plans for major factory investments in the United States in response to these trade dynamics.

(With inputs from agencies.)