New levies hit Korea, Vietnam

Higher steel tariffs to take effect tomorrow

- HYUNJOO JIN HONGMEI LI

Shares in South Korean and Vietnamese steelmakers, major Asian exporters of the metal to the United States, dropped yesterday after US President Donald Trump said he would double tariffs on imported steel and aluminium to 50%.

Trump announced on Friday the new steel and aluminium levies, which take effect tomorrow, intensifying a global trade war just hours after he accused China of violating an agreement with the US to mutually roll back tariffs and trade restrictions for critical minerals.

Steel industry experts said that while the increased tariff would cause significant disruption for major exporters to the United States, the rates could go down in light of some of Trump's trade policy reversals.

"Frequent shifts in the Trump administration's tariff policies introduce considerable uncertainty regarding the actual impact... I think the final result will be far lower than initially projected, especially concerning its duration," said Chelsea Ye, senior analyst at metals research firm McCloskey.

South Korea's Industry Ministry said yesterday it would respond to the 50% tariff on steel products as part of its trade discussions with Washington in order to minimise the impact on industry.

South Korea was the fourth-biggest exporter of steel to the United States last year, behind Canada, Mexico and Brazil, according to American Iron and Steel Institute data.