US Imposes Steel Tariff Escalation Measures

Published on 6.2.25

  The recent escalation of the global trade war has taken a significant turn with US President Donald Trump announcing plans to double tariffs on steel imports to 50% from 25%. This move is set to impact countries such as Canada, Mexico, and China. The decision comes after Trump accused China of violating an agreement to roll back tariffs and trade restrictions for critical minerals. Industry officials have requested swift information sharing with the government and cooperation from private sector companies to mitigate the effects of the tariffs. In response to the impending 50% US tariff on steel products, South Korea's Industry Ministry plans to respond as part of trade discussions with Washington. POSCO Group is considering building a US plant in light of the increasing steel tariffs, while Hyundai Steel has already begun planning its first overseas production facility in Louisiana, with a planned investment of $5.8 billion for an electric arc furnace-based steel mill set to be completed by 2029. Vietnam's exports of steel and steel products to the US have fallen 27% this year, and trade executives warn that the new tariffs will be a burden for exporting companies if prices don't rise in the US. Despite this, industry experts note that rates may decrease due to Trump's past policy reversals. South Korea plans to respond with its own measures to minimize impact on industry, while shares of Korean steelmakers have fallen after the announcement.

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