The steel industry is particularly disappointed after the summit between President Lee Jae-myung and U.S. President Donald Trump, which was scheduled to be held in Canada for the Group of Seven (G7) summit, fell through. The steel industry has been struggling due to a downturn in the construction market and low-price offensives from China, and starting from the 4th, a tariff of up to 50% is applied to U.S. export volumes.
The steel industry had high expectations for the upcoming summit with U.S. President Donald Trump, which would be the first since the U.S. imposed tariff measures in March. An industry official noted, "I expected that if dialogue between the leaders took place, it might accelerate the resolution of the tariff issue. It feels like there is a sense of disappointment within the company that the summit has fallen through." Other steel companies, including Hyundai Steel, share a similar sentiment.
The item tariff on steel and aluminum products, which was set at 25% after President Trump took office, was raised to 50% starting from 12:01 a.m. (local time) on the 4th of this month. The U.S. and Japan held a summit for about 30 minutes. Although the two countries did not reach an agreement, it is reported that they discussed the tariff issue.
Professor Kim Tae-hwang of Myongji University's Department of International Trade said, "Even if they do not reach an agreement in one go at the summit, opening up communication could help in future discussions at the upcoming NATO summit." With the Korea-U.S. summit falling through, the working-level staff must negotiate while pushing to organize a summit again.
The NATO summit is scheduled for the 24th to the 25th of this month, but attendance by the leaders of Korea and the U.S. has not been confirmed.
The mutual tariff waiver period imposed by the U.S. on Korea will end at midnight on the 8th of next month (local time), but significant progress in negotiations is reportedly lacking. Although the steel is subject to item tariffs and is not linked to mutual tariffs, the U.K. has lowered some item tariffs while negotiating with the U.S.
An industry official stated, "It is difficult to know the negotiation progress of other countries aside from the U.K., which is the only country to have reached an agreement, but discussions are ongoing."