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The South Korean SA516 Grade 55 steel government will formulate measures to respond to the US steel tariffs by the end of March
On March 13, 2025, the South Korean Ministry of Trade, Industry, and Energy (MOTIE) announced that the government will develop a response plan by the end of March 2025 to reduce the impact of policy adjustments on the country's steel industry, in response to the resumption of a 25% tariff on US steel imports to South Korea. South Korean Minister of Trade, Industry, and Energy Ahn Duk Geun stated that the government will take comprehensive measures to address the challenges posed by US tariff policies, while strengthening high-level communication with the US to minimize the impact of tariffs as much as possible.
US resumes taxation on South Korean steel, quota system ends
In 2018, the United States SA516 Grade 55 steel imposed a 25% tariff on all imported steel products under Section 232 of the Trade Expansion Act. After negotiation, South Korea has obtained an annual duty-free export quota of 2.63 million tons, allowing Korean made steel to be partially exempted from high tariff barriers. However, on February 10, 2025, the United States announced the termination of the 232 quota system applicable to South Korea, and from March 12, 2025, imposed a comprehensive 25% import tariff on all South Korean made steel products. Data shows that in 2024, South Korea exported 2.55 million tons of steel to the United States, a year-on-year increase of 6.5%, making it the fourth largest steel supplier to the United States. With the termination of the quota system, the cost of exporting South Korean steel to the United States has significantly increased, and industry competitiveness may be greatly affected.
The South Korean government actively responds and strengthens trade defense
To cope with this tariff adjustment, Andegen will travel to the United States before March 1, 2025, to consult with US officials on tariff exemptions and explore cooperation between the two countries in the fields of energy and shipbuilding. At the same time, the South Korean government has also increased its supervision of unfair trade practices. Andegen said, "We are concerned that unfair competition in low-priced steel products may intensify, and the government will take decisive measures to respond." South Korea has launched an anti-dumping investigation on carbon steel and alloy steel hot-rolled products exported from China and Japan to South Korea on March 4, 2025, and previously imposed temporary anti-dumping duties on Chinese hot-rolled steel plates. MOTIE stated that the government will take into account industry opinions and introduce measures to address steel trade and unfair imports by the end of March 2025, in order to maintain stability in the domestic steel SA516 Grade 55 steel industry.
