U.S. President Donald Trump officially announced on the 10th that he will apply 25% tariffs on steel and aluminum products to major countries such as South Korea from the 12th of next month (local time).
According to the proclamation signed by President Trump, 25% tariffs will be imposed on steel products and derivatives imported from South Korea, Argentina, Australia, Brazil, Canada, the European Union, Japan, Mexico and the United Kingdom from March 12. President Trump said he decided on the move because he thought the existing agreement was not enough to protect U.S. national security.
During Trump’s first term, the U.S. imposed 25% tariffs on steel products and 10% tariffs on aluminum products, respectively, for national security reasons under Article 232 of the Trade Expansion Act.
Since then, exceptions have been applied for various reasons. In the course of renegotiations for the Korea-U.S. free trade agreement, Korea has decided to introduce a quota system that limits export volume in exchange for exemption from 25 percent of steel tariffs.
The quota volume was set at 2.63 million tons, which is 70% of the average export volume at the time, and this figure has continued so far. However, after the 12th of next month, 25% tariffs will be applied to all Korean steel and aluminum exports to the U.S.
SAM KIM
US ASIA JOURNAL
