Korea's 'Trump Tariff Effect' Officially Begins... Steel and Aluminum Duty-Free Quota Abolished

Korea has officially begun to feel the impact of 'Trump tariffs'.

The United States implemented a measure imposing a uniform 25% tariff on steel and aluminum imports starting at midnight on the 12th (local time). This is the first case where Trump's universal tariff approach, applying the same tariff rate to all importing countries without discrimination, has been implemented.

Previously, Korea had been subject to a quota system that limited export volumes instead of paying tariffs as part of the Korea-US Free Trade Agreement (FTA) renegotiation, but President Donald Trump has now abolished all these exemptions through an executive order.

During his first term, President Trump imposed tariffs of 25% on steel and 10% on aluminum, but this time he has unified the tariff rate at 25% and broadened the scope to include various derivative products. Reuters and other sources analyzed that as a result of this measure, approximately $150 billion worth of steel, aluminum, and derivative products imported into the United States will be affected.

According to the International Trade Administration (ITA) under the US Department of Commerce, countries that exported steel to the United States last year included Canada (23%), Mexico (11%), Brazil (9%), Korea (9%), Germany (6%), and Japan (5%). The Korea International Trade Association reported that the US accounts for about 13% of Korea's total steel exports.

While President Trump is using tariffs as a negotiation tool, he is also aiming to build tariff barriers for the United States as a goal in itself. In a meeting with chief executive officers (CEOs) at a Business Roundtable in Washington DC today, he firmly stated that he has no intention of rolling back his tariff policy, saying, "Tariffs are having and will continue to have an enormously positive impact (on the US economy)."

Washington=Lee Sang-eun Special Correspondent selee@hankyung.com