S. Korea holds emergency meeting on U.S. tariffs on steel, aluminum imports

South Korea’s industry ministry held an emergency meeting Monday to assess the possible impact on local businesses from the United States’ plan to impose a 25 percent tariff on all steel and aluminum imports.

The Ministry of Trade, Industry and Energy held the meeting with officials from major local steel companies, including POSCO Holdings Inc. and Hyundai Steel Co., to discuss responses to the proposed U.S. tariffs, according to ministry officials.

Earlier in the day, U.S. President Donald Trump said he will announce on Monday (U.S. time) the imposition of a new 25 percent tariff on all steel and aluminum imports into the U.S.

The announcement stoked 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 accounts for some 13 percent of U.S. steel imports, according to data from the Korea International Trade Association (KITA).

Trump had imposed a 25 percent 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 2015-2017.

In the emergency meeting, Deputy Trade Minister Park Jong-won said the government will “proactively” respond to the shift in U.S. trade policy by using “all available networks” and closely collaborating with related industries.