US Imposes '25% Tariff' on 'Korean' Steel and Aluminum [Global Tariff War]

Additional Tariffs Imposed from the 12th of Next Month... Semiconductors and Automobiles to be Announced Soon

President Donald Trump officially announced on the 10th (local time) that a 25% tariff will be imposed on steel and aluminum products imported into the United States, as previously warned.

President Trump signed an executive order with this content in the Oval Office of the White House that afternoon. He stated that there would be "no exceptions or exemptions" to this tariff.

According to the original text of the executive order posted late that day on the White House website, this measure will impose an additional 25% tariff on all steel products imported from Argentina, Australia, Brazil, Canada, European Union (EU) countries, Japan, Mexico, Korea, and the United Kingdom starting from the 12th of next month. Since Korea's existing tariff rate is 0%, it will be subject to a 25% tariff. The temporary exemption on tariffs for steel imports from Ukraine will also be immediately terminated. Procedures for product exclusion and existing approvals will all be withdrawn.

This measure will be implemented after the Secretary of Commerce announces the system's readiness. The Customs and Border Protection (CBP) will prioritize reviewing the classification of steel products and impose maximum penalties for attempts to evade tariffs. The Secretary of Commerce may include additional items if necessary after monitoring the import of derivative steel products.

During his first term, President Trump imposed a 25% tariff on steel products and a 10% tariff on aluminum products citing national security under Section 232 of the Trade Expansion Act. However, exceptions were applied for various reasons thereafter. Korea agreed to introduce a quota system limiting export volumes instead of being exempted from the 25% steel tariff during the renegotiation of the Korea-US Free Trade Agreement (FTA). The quota volume was set at 2.63 million tons, which is 70% of the average export volume at that time, and this figure continues to this day.

President Trump emphasized the need to protect the future of the country for the revival of American manufacturing and production, stating, "When our great industries return to America." He added, "Protecting the steel and aluminum industries is essential," and "Today, I simplified the tariffs on steel and aluminum so that everyone can understand them clearly." He further stated, "It is 25% without exception, and it applies to all countries. However, if produced in the United States, there will be no tariff."

President Trump also mentioned that "tariffs on automobiles, semiconductors, and pharmaceuticals are under review." He said, "Many companies will now start doing business in the United States," and "We will meet every week for the next four weeks to discuss other topics such as automobiles, pharmaceuticals, and semiconductor chips." He emphasized, "These measures will bring many jobs to our country," and "The automobile industry will become a very important sector, and the United States will become stronger than ever." This suggests that Korea's major exports, automobiles, and semiconductors, may also be subject to US tariffs.

Regarding aluminum, President Trump stated, "Similarly, many exceptions and exemptions have been added since 2018, but this measure eliminates all exceptions and raises the aluminum tariff rate from 10% to 25%," adding, "We need to reclaim the aluminum industry, and in fact, the tariff rate may increase further." He added, "We will discuss things that will have a remarkable impact on our country and jobs over the next three weeks."

Regarding reciprocal tariffs, he said, "We want to make this (tariff) very simple and good," adding, "We don't want to harm other countries." "But they have taken advantage of us for years, and they imposed tariffs on us, but we did not," President Trump said, "Now it's time to be 'reciprocal.'" He stated, "You will hear the word 'reciprocal' often," adding, "If they are 25% (tariff rate), we are also 25%, if 10%, we are also 10%." "This applies to everything and is not limited to just steel and aluminum," he said.

US Imposes '25% Tariff' on 'Korean' Steel and Aluminum [Global Tariff War]

Washington Correspondent Lee Sang-eun selee@hankyung.com / Video by Reporter Lim Dae-cheol playlim@hankyung.com