South Korea’s steel industry is grappling with an immediate export blow after the Trump administration raised tariffs on imported steel and aluminum to 50 percent from 25 percent from Wednesday (local time) onwards.

U.S. President Donald Trump issued a proclamation on Tuesday, stating that the increased tariffs would take effect the following day, describing the measure as “necessary” so that steel and aluminum imports would “not threaten to impair the national security.” Tariffs on imports from the United Kingdom, however, will remain at the existing 25 percent according to the proclamation.

The tariff hike has stirred concern within the Korean steel sector, particularly for shipments already contracted and en route to the United States. “We have shared the 25 percent tariff burden with our U.S. customers so far, but we do not know what to do with the sudden doubling of the rate,” an industry official said.

Korean steel exports to the United States have already been on a downward trend. Outbound shipments fell 10.2 percent year-on-year from January to April 2025, declining by 20.6 percent in May alone (through the 25th).

Observers warn that the U.S. action could have broader implications for the global steel market. Major exporting countries could divert shipments to other markets as the U.S. limits access to its markets, which would likely intensifying price competition. If those countries then impose their own import restrictions to prevent dumping, Korean steelmakers could face further barriers abroad. The European Union strengthened its safeguard measures to curb steel imports in March 2025 after the United States first imposed the 25 percent tariff, aiming to protect its domestic industry.

Trade experts see the latest U.S. move as a tactic to prompt faster tariff negotiations. Professor Heo Yoon of Sogang University’s Graduate School of International Studies said the measure is “aimed at curbing the tendency of negotiating countries to delay or loosen their stance following the recent federal court ruling.”

The Korean steel industry has urged the government to request a deferral of the tariff hike for shipments that have already cleared Korean customs and are on their way to the United States. Some are even calling for the reinstatement of an export quota system.

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