US Imposes '25% Tariff' on Steel and Aluminum

South Korea's 'Duty-Free Quota' Abolished

EU Imposes Retaliatory Tariffs Worth 41 Trillion Won

The 25% tariff that the United States announced it would impose on steel and aluminum went into effect at 12:01 AM local time (1:01 PM Korean time) on the 12th. As a result, South Korea is now affected by the 'Trump tariff' for the first time.

This tariff applies not only to steel and aluminum but also to 253 derivative products made from steel and aluminum. Reuters reported that products worth $150 billion (approximately 218 trillion won) worldwide will be affected by the tariff.

South Korean steel and aluminum are no exception. In particular, steel could previously be exported duty-free up to 2.63 million tons annually under the Korea-US Free Trade Agreement (FTA), but with this measure, the quota (export limit) has been abolished and a 25% tariff must be paid instead.

In response to the US steel and aluminum tariff implementation, the European Union (EU) has taken retaliatory action. The EU Commission announced that it would impose tariffs on US products worth 26 billion euros (approximately 41 trillion won) starting in April. Of this, 8 billion euros worth will be subject to tariffs from April 1, and 18 billion euros worth from around April 13. The EU stated that it would "impose tariffs on US products ranging from ships to bourbon whiskey and motorcycles."

Washington=Lee Sang-eun, Correspondent selee@hankyung.com