SEOUL – South Korea’s Acting President Choi Sang-mok on Feb 11 said his government would seek talks with the US administration about Washington’s 25 per cent tariffs on steel and aluminium imports to reflect the interests of its companies.
The chief executives of 20 major South Korean conglomerates plan to visit the US in the near future, while the government also intends to discuss response measures with Japan and the European Union, Mr Choi said.
The government is making an “all-out effort” to build close ties with US President Donald Trump’s administration to protect the interests of South Korean companies, Mr Choi said.
Earlier on Feb 11, Trade Minister Cheong In-kyo said Mr Trump’s 25 per cent tariffs due to come into force in March would reduce US steel demand and erode steel exporters’ profitability.
But he said the tariffs may offer opportunities for Korean companies to find new export markets.
South Korea would “actively consider” whether there is room for negotiation on the tariffs, Mr Cheong said, despite Mr Trump’s pledge on Feb 10 that the higher tariffs would come in “without exceptions or exemptions”.
Mr Cheong was speaking at a meeting with officials from steel companies in Seoul.
South Korean steelmakers extended losses on Feb 11.
Posco closed down 0.8 per cent, falling for a second straight day, and Dongkuk Steel Mill fell 0.9 per cent to close at a three-month low, while the broader Kospi market rose 0.7 per cent.
South Korea is the fourth-biggest exporter of steel to the US, behind Canada, Mexico and Brazil in 2024, according to American Iron and Steel Institute data.
During Mr Trump’s first term in 2018, South Korea and the US agreed on an annual duty-free steel quota of 70 per cent of volumes shipped to the US on average from 2015 to 2017.
The deal made South Korea the first US ally to secure an indefinite exemption on the steel tariffs.
“Thus, we see room for negotiation with the second Trump administration if necessary,” Citi said in a report.
Citi estimates that the latest US steel tariffs will have a negative impact on South Korea’s economy by around 0.11 per cent to 0.22 per cent of gross domestic product.
EU trade ministers will hold an unscheduled videoconference on Feb 12 to discuss the bloc’s response to impending US steel and aluminium tariffs, EU diplomats said on Feb 11. REUTERS
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