On March 12, 2025, the United States is set to impose a 25% tariff on steel and aluminum imports, affecting not only domestic suppliers but particularly those from South Korea who had been previously exempted. This announcement by President Trump has generated significant urgency within the global steel industry, prompting South Korean companies to scramble to expedite their export shipments to the U.S. to avoid the impending tariffs.
According to industry insiders, as of March 10, South Korean manufacturers are making concerted efforts to accelerate export schedules. One insider noted, "Following President Trump’s announcement of the tariff imposition, the industry has been busy advancing schedules to make sure export volumes reach the U.S. by March 12." The logistical operation at Pyeongtaek Port, one of South Korea's major logistic hubs, is indicative of this rush, with steel products piled high as companies prioritize shipments bound for the U.S. This urgency has unfortunately led to delays for orders aimed at other regions.
Statistics indicate the significance of trade between South Korea and the U.S., with the former exporting approximately 2.63 million tons of steel to the latter annually. Within this volume, steel pipes represent the largest share at 1.09 million tons, followed by hot-rolled steel sheets at 500,000 tons, heavy plates at 188,000 tons, and color-coated steel sheets at 150,000 tons. Companies such as SeAH Steel and Husteel specialize predominantly in steel pipe production, whereas heavyweights like POSCO and Hyundai Steel focus more on hot-rolled and heavy plates.
The logistical challenges posed by the tariff are considerable. Typically, it takes around two weeks for shipments to reach the U.S. West Coast. An anonymous industry source explained the scenario: "We have prioritized production and expedited delivery for U.S.-bound products by delaying orders for other regions." This strategy highlights the desperation among producers to maximize shipment volumes to the U.S. before the tariffs come online.
Despite their significant efforts, South Korean companies face looming challenges. SeAH Steel has announced plans to ramp up local production at its U.S. plant to mitigate the effects of the tariff. Meanwhile, competitors such as POSCO, which lacks local production facilities, are finding it difficult to respond effectively. An insider elaborated, "Since few companies have local production facilities, pushing as much volume as possible is the best strategy." This suggests the scramble to load as much cargo as possible onto outbound ships carries great stakes for these manufacturers.
The urgency surrounding steel shipments has also intersected with rising steel prices. U.S. steel companies have reacted to the approaching tariffs by ramping up product prices. According to the CRU, the price of hot-rolled steel sheets distributed within the U.S. reached $998 per metric ton during the fourth week of February 2025 – this marks a staggering increase of about 32% compared to the price of $757 just the previous month. The insider mentioned, "The current distribution price of Korean hot-rolled steel is around 820,000 won. Considering logistics costs and tariffs, exports are feasible at around 1.3 million won. If the current situation persists, price competitiveness will not be compromised."
With only two days remaining before the tariffs take effect, hopes linger amid fears. The industry is hopeful for government intervention, but so far, there have been no significant updates to suggest negotiations might ease the burden of tariffs. The looming deadline and intensified export efforts highlight the broader impact these tariffs could have on international trade relations, the domestic steel market, and economic forecasts moving forward.
While steel manufacturers wrangle with logistical constraints and production adjustments, one thing remains clear: the introduction of the 25% tariff on steel and aluminum imports from South Korea marks another chapter of escalated trade tensions, affecting companies and consumers alike across the globe. It will be imperative for all stakeholders to monitor the situation closely as the clock ticks down to the tariff's implementation.