U.S. imposes 25% steel and aluminum import tariff on Wednesday

Thank you for joining us. I'm Yoon Jung-min.

Starting today, the Trump administration's 25-percent levy on steel and aluminum products that America imports from countries around the world went into effect.

With this, the yearly tariff-free quota applied on Korean steel products has been scrapped.

The authorities and businesses here are closely watching the move.

Our Choi Soo-hyung has the latest.

Starting Wednesday, a 25-percent tariff has been imposed on steel and aluminum exported to the United States.

The new tariffs have been applied worldwide without exceptions.

For steel, the tariffs affect countries including South Korea, Canada, Brazil, Mexico, European Union member states, Japan and the UK.

For aluminum, previous exemptions for certain countries and products have been removed, and the tariff has been raised from 10 percent to 25 percent.

However, 166 derivative products,.. including bolts, nuts, and springs are subject to tariffs, whereas 87 derivative items, including automobile and aircraft parts, are exempt until further notice.

As a result, Canada, which is the largest supplier of steel and aluminum to the U.S., is expected to face the biggest impact.

According to the U.S. Census Bureau, in 2024, Canada accounted for 23 percent of total U.S. steel imports and about 60 percent of aluminum imports, while South Korea ranked 4th in both categories.

South Korea's duty-free quota system for 2-point-63 million tons of steel products, which began in 2018, has now been ended, and the tariff on aluminum has been increased from 10 percent to 25 percent.

The removal of the export volume limit under the "quota system" could provide an opportunity to expand exports to the U.S.

However, there are concerns about the country's weakened competitiveness due to China's low-priced products and a decrease in international demand.

The "reciprocal tariffs" that the Trump administration has announced to begin on April 2nd are expected to accelerate the ongoing trade crisis.

In particular, the planned tariffs on key South Korean exports, such as semiconductors and automobiles, are increasing uncertainty for its market in the U.S.

Moreover, the U.S. livestock industry has called South Korea's ban on beef from cattle over 30 months and its agricultural quarantine system unfair, urging the Trump administration to take action.

Amid the growing crisis, the South Korean Ministry of Trade, Industry and Energy will strengthen the public-private emergency system in response to U.S. tariff measures and prepare strategies to address reciprocal tariffs on items such as automobiles in early April.

Choi Soo-hyung, Arirang News.