South Korea convenes emergency meet on US steel tariff hike

Seoul, June 2 (IANS) The government held an emergency meeting with major local steelmakers on Monday to discuss the impact of the United States' plan to double its tariffs on all steel imports to 50 per cent later this week, the industry ministry said.

The meeting, hosted by the Ministry of Trade, Industry and Energy, was attended by officials from POSCO Group, Hyundai Steel Co. and other major steel companies here, according to ministry officials.

Monday's meeting came after U.S. President Donald Trump said last week he will double tariffs on foreign imports of steel to 50 percent Wednesday (U.S. time), reports Yonhap news agency.

The ministry said steel industry officials asked the government to swiftly share information on U.S. tariff measures and continue cooperation with the private sector to respond to them.

The ministry added that the government will work to minimize any negative impact of U.S. tariffs on the local industry through trade negotiations with Washington.

In May, South Korea's steel exports went down 12.4 percent from a year earlier to $2.6 billion, with shipments to the U.S. plunging 20.6 percent over the cited period.

Korean steelmakers have been working to soften the blow of Trump tariffs, with some companies planning to increase their production in the U.S.

Hyundai Steel plans to invest $5.8 billion to construct an electric arc furnace-based steel mill in Louisiana by 2029, its first overseas production facility, according to company officials.

Last week, Trump said that he planned to double tariffs on foreign imports of steel to 50 percent, further casting a cloud on steelmakers around the globe.

He posted on social media that the higher tariff rate would take effect on June 4. "It is my great honour to raise the Tariffs on steel and aluminum from 25 per cent to 50 per cent, effective Wednesday, June 4th. Our steel and aluminum industries are coming back like never before. This will be yet another BIG jolt of great news for our wonderful steel and aluminum workers. MAKE AMERICA GREAT AGAIN!" Trump wrote on his Truth Social platform.

—IANS

na/