US Steel and Aluminum 25% Tariffs Take Effect... South Korea First Target

The Donald Trump administration in the United States has fired the starting shot for a tariff war against the entire world. According to the proclamation signed by President Trump on the 10th, from 12:01 a.m. on the 12th (local time), a 25% tariff will be imposed on all steel, aluminum, and their derivative products imported into the U.S. South Korea will be subject to the tariffs starting from 1:01 p.m. on the 12th, Korean time.

During the first term of the Trump administration, tariffs of 25% on steel and 10% on aluminum were imposed. This time, the aluminum tariff rate has been raised to 25%, and the scope of applicable items has been expanded to 253 derivative products. However, while tariffs will be applied immediately on 166 derivative products such as bolts, nuts, and springs, tariffs on 87 derivative products including bumpers, car bodies, suspensions, home appliance parts, and aircraft parts will be deferred until further notice from the U.S. Department of Commerce.

Yonhap News

In the first term, tariff exceptions and exemptions were applied based on agreements with various countries, but this time all have been nullified.

Accordingly, South Korea will also be directly subject to the 25% tariffs on steel and aluminum starting from this day. This is due to the abolition of the existing tariff-free quota (annual 2.63 million tons) on steel that was applied through negotiations with the U.S. in 2018. Not only South Korea but also allies such as Australia, the European Union (EU), and Japan are subject to the same tariff application.

According to statistics from the International Trade Administration (ITA) under the U.S. Department of Commerce, the major steel exporters to the U.S. last year were Canada ($7.14 billion, 23%), Mexico ($3.5 billion, 11%), Brazil ($2.99 billion, 9%), South Korea ($2.9 billion, 9%), Germany ($1.9 billion, 6%), and Japan ($1.74 billion, 5%).

Bloomberg News predicted that the global trade war will intensify starting next month. The Trump administration announced that from April 2, reciprocal tariffs will be imposed worldwide. Additionally, tariffs will be imposed on automobiles, semiconductors, pharmaceuticals, lumber, and agricultural products.

This content was produced with the assistance of AI translation services.