Seoul, Feb 11 South Korea's industry ministry said on Tuesday it is closely communicating with local businesses and industry leaders to devise ways to minimize the impact from new U.S. tariffs on steel and aluminium imports that will inevitably affect local manufacturers and exporters.
The Ministry of Trade, Industry and Energy held an emergency meeting with officials from the Korean steel industry to assess the possible impact the U.S. tariffs may have on local businesses, according to ministry officials.
Earlier in the day, U.S. President Donald Trump signed proclamations to impose 25 percent tariffs on all steel and aluminium products coming into the United States starting on March 12, reports Yonhap news agency.
The announcement sparked 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 was the fourth-largest exporter of steel to the United States last year, accounting for some 11 percent of Washington's steel imports, according to data from the U.S. International Trade Administration.
The country was also the fourth-biggest exporter of aluminium to the U.S., taking up about 4 per cent of its aluminium imports.
Trump had imposed a 25 per cent 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 and 2017.
In the emergency meeting, the industry ministry said it will closely communicate with the U.S. government to protect the interests of the South Korean steel and aluminium industries and devise measures to minimize the impact from U.S. tariffs.
"Steel exports to the U.S. may decline if the price of steel products produced in America gets comparatively cheaper than foreign products following the implementation of the new tariffs," Trade Minister Cheong In-kyo said.
"But at the same time, there may be new opportunities as the conditions for competition will become the same for all major steel exporters."
The ministry said its senior officials are planning to visit the U.S. in the near future and deliver the Korean industries' concerns to related authorities.
Austin Chang, president of the institute for international trade under the Korea International Trade Association (KITA), also said concerns and opportunities coexist with the shift in U.S. trade policies.
"Korean steelmakers may suffer a negative impact on their profitability as they won't be able to keep up with their sales at the original price if the U.S. tariffs take effect," Chang said.
"But the companies may have an opportunity to gain a competitive edge against Canada and Mexico, two of the largest steel exporters to the U.S., with the lifting of the quota," he added.
Unlike South Korea, Canada and Mexico had been granted exemptions on the import quota and tariffs on their U.S. shipments of steel and aluminium products.
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