South Korea's Steel Shipments to US Plummet Amid Increasing Tariffs

Strategic Insights -

South Korea's steel shipments to the US have taken a hit following the imposition of steep tariffs, with export prices declining over 9 percent and overall exports dropping 16.3 percent in May from the previous year. The US government's tariffs, which began at 25 percent and were later doubled to 50 percent, have significantly impacted South Korea's steel exports, with industry officials expecting the effects to be felt even more in the second half of the year.

Key Takeaways:

  • South Korea's steel exports to the US dropped 16.3 percent to $327 million in May from $390 million a year earlier.
  • Export unit prices declined 9.4 percent to $1,295 per ton from $1,429 over the same period.
  • The US government imposed a 25 percent tariff on all steel and aluminum imports on March 12 and doubled the rate to 50 percent on June 4.
  • Korean steelmakers, including POSCO Group and Hyundai Steel Co., are exploring ways to mitigate the impact of the tariffs on their operations.
  • Hyundai Steel announced plans to invest $5.8 billion in a new US steel mill, with production scheduled to begin in 2029.
  • POSCO has decided to invest in Hyundai Steel's US steel mill project.

Statistics:

  • South Korea's steel exports to the US dropped 16.3 percent in May to $327 million.
  • Export unit prices declined 9.4 percent to $1,295 per ton in May from $1,429 over the previous year.
  • The US government imposed a 25 percent tariff on March 12 and doubled the rate to 50 percent on June 4.
  • The tariffs are expected to have a greater impact on Korean steelmakers in the second half of the year.
  • Hyundai Steel's planned investment in the new US mill is $5.8 billion.
  • Production in the new mill is scheduled to begin in 2029.

Sources:

  • Yonhap News Agency (June 23, 2025)
  • Korea International Trade Association (KITA) (no specific date)
  • POSCO Group (no specific date)