Steel products are seen outside a steel pipe manufacturing plant in Pohang, South Korea, on Feb 13, 2025. (PHOTO / AFP)

SEOUL – South Korea’s Industry Ministry said on Monday it will respond to the looming 50 percent US tariff on steel products as part of its trade discussions with Washington in order to minimize the impact on industry.

US President Donald Trump said on Friday he planned to increase tariffs on imported steel and aluminum to 50 percent from 25 percent starting Wednesday, ratcheting up pressure on global steel producers and deepening his trade war.

South Korea is the fourth-biggest exporter of steel to the United States, behind Canada, Mexico and Brazil last year, according to American Iron and Steel Institute data.

South Korea’s Industry Ministry said in a statement that it had held an emergency meeting with officials from the country’s major steelmakers, including POSCO and Hyundai Steel.

Shares of South Korean steelmakers lost ground on Monday, with POSCO and Hyundai Steel falling 3 percent and SeAH Steel Corp down 6.3 percent in morning trade.

The 50 percent tariffs will add challenge to Korean steel exporters which have refrained from sharply boosting exports to the US to avoid Washington scrutiny, despite rising US steel prices, an industry executive told Reuters.

“It will be a burden to exporting companies, if there are no additional steel price increases in the US,” he told Reuters, asking not to be identified due to the sensitivity of the issue.

ALSO READ: S. Korea vows more support measures over US tariffs, including for drugmakers

Despite tariffs, South Korea’s steel shipments to the United States rose 12 percent in April from a year earlier, according to trade data.

This picture taken on Feb 13, 2025 shows steelworks of South Korea’s largest steelmaker POSCO as seen over a residential area in Pohang.  (PHOTO / AFP)

Steel and aluminum tariffs were among the earliest put into effect by Trump when he returned to office in January. The tariffs of 25 percent on most steel and aluminum imported to the US went into effect on March 12.

Industry officials said the tariffs have increased steel prices in the United States, impacting several sectors, including home appliances, cars, and construction.

Trade talks

South Korea, a major US ally, has called for the exemption of tariffs on steel, autos and others items, during talks with the United States.

Seoul agreed in late April to craft a trade package by the end of the 90-day pause on Trump’s reciprocal tariffs in July, but it has been difficult for negotiators to make big decisions due to a political leadership vacuum.

READ MORE: South Korea, US aim for trade package before tariff pause ends in July

In late March, Hyundai Steel announced a plan to build a $5.8 billion factory in Louisiana in response to US tariffs, but the factory will not open until 2029. In April, Hyundai Steel’s bigger rival POSCO signed a preliminary deal to make an equity investment in the factory project.