The Trump administration will impose a 25% tariff on South Korean steel and aluminum imports starting at midnight on Wednesday. This marks the first direct application of tariffs on South Korean products since the Trump administration began implementing its new trade policies, signaling a tangible disruption to U.S.-bound exports.
On Sunday, Commerce Secretary Howard Rutnik confirmed that the tariffs would take effect as planned. In an interview with NBC News, he also noted that the 250% tariffs on Canadian lumber and dairy products would be delayed until April 2, a date Trump had previously mentioned for initiating reciprocal tariff measures. Rutnik justified the tariffs by citing Canada’s import duties on U.S. goods and the need to address the fentanyl crisis. “We’ll revisit the fentanyl issue on April 2 and review broader trade and reciprocity matters,” he stated.
Addressing inflation concerns, Rutnik acknowledged that some foreign products might become more expensive but emphasized that American-made goods would be more affordable. He outlined Trump’s strategy, explaining that the administration will negotiate tariffs country by country to dismantle foreign trade barriers and empower American farmers, ranchers, and fishermen. Rutnik predicted that U.S. agricultural producers will benefit from increased value, leading to lower prices for American farm products, crops, and seafood. He dismissed the possibility of a recession, asserting that Trump plans to stimulate economic growth through unprecedented measures.
The tariffs are authorized under Section 232 of the U.S. Trade Expansion Act, which permits import restrictions when foreign products threaten national security. Trump signed the proclamation on February 10, imposing a blanket 25% tariff on imported steel and raising the existing 10% aluminum tariff to 25%. This measure removes previous exemptions granted to South Korea, Mexico, Canada, the European Union, and Japan. It maintains the existing 25% tariffs on imports from China, Vietnam, and Taiwan. The tariffs will also apply to 167 steel and 123 aluminum derivative products, with specific calculation methods to be announced later.
As the third-largest steel exporter to the U.S. after Japan and India, South Korea’s steel industry—including major companies like POSCO and Hyundai Steel—faces significant challenges from these new trade barriers.
