South Korea Plans Tariffs on Chinese Steel Imports Amid Influx
South Korea is poised to impose tariffs on imports of certain Chinese steel products to address concerns over a surge in cheaper imports that have hurt domestic producers.
Following a preliminary investigation, the trade ministry has announced plans for a provisional tariff of up to 38.02% on hot-rolled steel plates from China. Additionally, a tariff of 28% is proposed on Baoshan Iron & Steel Co., while a duty of 38% would be applied to suppliers like Hunan Valin Xiangtang Iron and Steel Co.
The government initiated the investigation in October 2022 after a request from Hyundai Steel Co. The proposed tariffs are subject to approval by the finance ministry.
The move comes amid China's efforts to reduce steel production due to a prolonged property crisis. However, China remains a major steel exporter, with exports hitting a nine-year high in 2022.
Hyundai Steel has attributed its business struggles to an influx of hot-rolled steel plates from China and Japan, prompting the company to seek government intervention. Low-priced Chinese imports have also led to the closure of Posco Holdings' No. 1 wire rod plant in Pohang.
The proposed tariffs align with the Trump administration's recent tariffs on steel and aluminum imports to combat alleged circumvention attempts by countries like China.