Korea’s steel exports to the United States plunged nearly 19 percent in March, the first month under a 25 percent US tariff that took effect on March 12.
According to data from the Korea International Trade Association, steel shipments to the US in March fell by 18.9 percent on-year to $341 million, while exports by volume declined by 14.9 percent to 250,000 metric tons.
The drop coincided with the imposition of US tariffs -- 25 percent on steel and 10 percent on aluminum -- which ended Korea’s tariff exemption under a quota agreement that had allowed an annual 2.63 million tons of steel to be exported tariff-free.
Although tariffs appear to be a contributing factor to the decline, industry insiders caution that it is too early to fully assess the impact of the levies, as the steel trade is influenced by complex dynamics, including long-term contracts, shifting demand and broader economic conditions.
The US tariff measures have prompted Korean steel giants such as Hyundai Steel and Posco to respond to the shifting trade landscape with longer-term strategies.
Earlier this week, Posco reportedly expressed interest in acquiring a stake in Hyundai Steel’s planned $5.8 billion plant in Louisiana, signaling a rare partnership that could help them navigate protectionist policies and respond more swiftly to global supply chain disruptions.
Despite tariff threats abroad, Korean steelmakers are finding some relief at home with a drop in steel imports from China.
Data from the Korea Iron & Steel Association showed that Korea imported 679,853 tons of Chinese steel in March, a 19.7 percent decline from 847,265 tons in the same month last year. Korea’s total imports of Chinese steel shrank 19 percent on-year in the first quarter, down to 1.84 million tons.
The decline comes ahead of a new policy set to impose provisional anti-dumping tariffs of up to 38.02 percent on Chinese heavy steel plates and hot-rolled steel.
While the tariffs have yet to take effect, industry officials suggest that rising trade barriers and weakening demand may already be discouraging Chinese exporters.
minmin@heraldcorp.com
