South Korean Steel Exports Feel The Heat Of Trump’s Tariffs, Exports To US Fall 19 Per Cent In March

<p>South Korea witnessed a significant drop in steel exports to the United States in March, with outbound shipments plunging nearly 19 per cent compared to the same period last year. This decline followed steep tariffs introduced by the Donald Trump administration on all imported steel products.</p>
<p>According to figures released by the Korea International Trade Association (KITA), steel exports to the US amounted to $340 million in March&mdash;marking an 18.9 per cent decrease year-on-year. The sharp drop followed Washington’s decision to implement a 25 per cent tariff on all steel imports starting March 12 (US time), as part of its strategy to curb trade deficits and boost domestic production, reported IANS.</p>
<h3>Tariff Impact Yet To Fully Unfold</h3>
<p>While it is too early to fully gauge the effect of these tariffs, some industry analysts suggest the changes are beginning to show. Given that export contracts are often made months in advance, the complete impact may not yet be visible in current trade figures. However, concerns are mounting within South Korea&rsquo;s steel industry.</p>
<p>&ldquo;Local industries are feeling a growing sense of unease as unprecedented uncertainties persist,&rdquo; said Trade Minister Cheong In-kyo. He noted that &ldquo;the impact of tariffs imposed by the Donald Trump administration is anticipated to materialise in the second quarter.&rdquo;</p>
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<h3>Steelmakers Respond, Government Steps In</h3>
<p>In response to the tariffs, Korean steelmakers are actively exploring countermeasures. Some are shifting focus to production within the US. Hyundai Steel Co., for example, has unveiled plans to invest $5.8 billion in an electric arc furnace-based steel plant in Louisiana by 2029&mdash;its first manufacturing base overseas.</p>
<p>To cushion the blow for affected sectors, the South Korean government has pledged substantial financial assistance. &ldquo;The government will work together with related authorities to closely monitor export conditions in each region and swiftly devise measures to ease challenges faced by local exporters,&rdquo; said Cheong.</p>
<p>During the first quarter, South Korea’s total exports declined by 2.1 per cent year-on-year, totaling $159.8 billion. The downturn was largely attributed to weaker performances in the automotive and machinery industries.</p>