The decision builds upon tariffs first introduced during Trump’s initial term - 25 percent on steel and 10 percent on aluminum - which had previously allowed exemptions for select trading partners through duty-free quotas.
South Korea, the fourth-largest supplier of U.S. steel imports after Canada, Brazil, and Mexico, has maintained a special quota status, enabling it to avoid tariffs on 54 product categories totaling 2.63 million tons.
South Korean steelmakers, which have strategically limited exports to preserve quota benefits and circumvent the 25 percent tariff, may now need to reassess their approach to the U.S. market in light of the proposed changes.
In addition to steel and aluminum tariffs, Trump is expected to outline further details on reciprocal tariffs in remarks scheduled for Tuesday or Wednesday. “And very simply, it’s, if they charge us, we charge them,” Trump said, reiterating his protectionist stance.
The implications for South Korea remain uncertain despite the existing U.S.-Korea Free Trade Agreement (KORUS FTA), which has eliminated tariffs on about 98 percent of traded goods, according to a 2022 report by the Korea Institute for International Economic Policy (KIEP).
South Korea’s vulnerability stems from its sizable trade surplus with the United States, which reached approximately 81 trillion won last year, making it the eighth-largest surplus country in U.S. trade relations.
Trade analysts suggest that the broader economic impact could extend beyond immediate tariff concerns. “The implementation of universal tariffs could mark a turning point for Korean exports,” said Yang Ji-won, a senior researcher at the Korea International Trade Association (KITA).
A KITA report released Sunday indicated that if universal tariffs take effect, South Korea’s total exports could decline by 1.9 percent based on figures from January to November of last year. The projected impact would be less severe, at 0.1 percent, if additional tariffs were limited to China, Canada, and Mexico.
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