South Korea Imposes Tariffs on Chinese Steel
Amid concerns over a market influx of inexpensive Chinese imports, South Korea plans to implement tariffs on Chinese steel and manufacturers, echoing a similar move by the Trump administration.
According to a statement from the Ministry of Trade, Industry, and Energy, the practice has negatively impacted South Korea's steel industry, as evidenced by a preliminary investigation. The government intends to impose a provisional tariff of up to 38.02% on hot-rolled steel plates imported from China.
Additionally, South Korea aims to implement a tariff of nearly 28% on Baoshan Iron & Steel Co. and a duty of approximately 38% on suppliers such as Hunan Valin Xiangtang Iron and Steel Co. These measures are subject to approval by the Ministry of Finance.
China's steel industry has begun reducing production due to a protracted property crisis, but it continues to produce significantly more steel than it can consume domestically, leading to exports. China's steel exports surged to a nine-year high in 2022.
Earlier this month, President Trump imposed a 25% tariff on all steel and aluminum imports into the United States, aiming to counter what administration officials alleged were attempts by countries like China to avoid existing duties. This measure came after a 10% tariff on all Chinese imports was introduced a week prior.
Hyundai Steel Co. of South Korea reported a decline in business due to an influx of hot-rolled steel plates from China and Japan, prompting a complaint to the government. Inexpensive Chinese products also contributed to Posco Holdings Inc., the nation's leading steel producer, closing its No. 1 wire rod plant in Pohang.