A 25% tariff on all steel and aluminum products imported into the United States will be fully implemented in all countries, including South Korea, on March 12.
In a tariff proclamation regarding steel and aluminum released on the 10th, former President Donald Trump listed countries such as South Korea, Argentina, Australia, Brazil, Canada, Mexico, European Union (EU) member states, Japan, and the United Kingdom that had previously been granted exemptions during his first term. Trump noted, "Agreements with these countries have not effectively addressed national security concerns or provided long-term alternatives," and stated, "Existing agreements with each country will be terminated as of March 12." This means that countries like South Korea will begin to face a 25% tariff on steel and aluminum products per the administrative order signed by Trump effective March 12.
In March 2018, during his first term, Trump imposed a 25% tariff on steel and a 10% tariff on aluminum under Section 232 of the Trade Expansion Act. The U.S. government began imposing tariffs on March 23, 2018, but granted duty-free quotas to South Korea, Canada, Mexico, European Union (EU), and the United Kingdom. At that time, South Korea accepted a quota system that limited export volumes in exchange for exemption from the steel tariff through negotiations with the U.S. As a result, a duty-free quota of 2.63 million tons, which is 70% of the average annual export volume (approximately 3.83 million tons) from 2015 to 2017, was applied, and this system has remained in place. However, due to this announcement, a 25% tariff will now be applied to the 2.63 million tons that were previously duty-free.
Trump hinted that tariffs would continue to be imposed. He said, "I will probably hold trade meetings regarding tariffs about once a week for the next four weeks," adding, "Over the next few weeks, I will look into not only steel and aluminum but also semiconductors, automobiles, and pharmaceuticals, as well as a couple other items."