U.S. President Donald Trump, during a visit to U.S. Steel on the 30th last month (local time), announced that he would raise tariffs on steel and aluminum from the current 25% to 50% starting on the 4th of this month, causing alarm in the global steel and aluminum industry. Some speculate that due to the difficulty of achieving steel self-sufficiency in the U.S., high tariffs may not be sustainable for an extended period.
According to the Korea Institute for Industrial Economics and Trade on the 2nd, the import dependency of the U.S. on steel pipes and cold-rolled steel sheets exceeds 50% to 60% as of 2023. The import dependency for shaped steel or hot-rolled and plate products is below 20%. In the period from January to April this year, Korea's steel exports to the U.S. showed a decline in products with low import dependency for the U.S., such as shaped steel (-32.4%), medium and heavy plates (-28.8%), hot-rolled steel sheets (-26%), and cold-rolled steel sheets (-23.6%), while exports of cold-rolled steel sheets (32.8%), rebar (21.8%), and galvanized steel sheets (13.9%) increased.
An industry official noted, "High value-added products like electrical steel sheets (steel sheets with excellent electrical properties) that are not produced in the U.S., as well as galvanized, color-coated steel sheets, and steel pipes, could serve as negotiating cards for our country's tariffs."
During Trump's first term, exceptions were applied to some items. An official from the Ministry of Trade, Industry and Energy said, "Currently, there are no exceptions, but during Trump's first term, there was a system that exempted tariffs on items not produced in the U.S., and exceptions like that for the U.K. have arisen this time. We are continuing to monitor the situation to find a direction."