Korea's Steel exports to U.S. fall 26% in July on higher tariffs

Korea's Steel exports to U.S. fall 26% in July on higher tariffs

South Korea's steel exports to the United States have taken a significant hit in July, with a 26% decline compared to the same period last year. This steep drop can be attributed to the increasing tariffs imposed by the U.S. on Korean steel products [1].

The U.S. tariffs, which started at 25% in March 2018 and have since been adjusted, have put considerable pressure on South Korean steel exports. Despite these challenges, South Korea's overall exports have shown resilience, with a 7.6% increase in the first 20 days of August, according to data released by the customs office [1].

While the recent trade deal has capped the tariffs at 15%, the impact on steel exports has been substantial. The sector, which has been a significant contributor to South Korea's economy, has faced considerable headwinds. The 26% decline in July exports underscores the challenges posed by the tariffs, which have made it more expensive for U.S. consumers to purchase South Korean steel products.

The tariffs have not only affected exports but also the broader economic outlook. Policymakers are cautious about the potential impact of ongoing global protectionism and lingering tensions with Washington. The central bank is likely to stay cautious on the growth outlook, as tariffs may still pose risks to exports down the road [1].

South Korea's steel industry is a key player in the global market, and the tariffs have highlighted the vulnerability of the country's export-led model. The industry's ability to adapt and find new markets will be crucial in navigating these challenges. While the trade deal has provided some relief, the long-term impact of the tariffs on South Korea's steel exports remains uncertain.

References:
[1] https://www.businesstimes.com.sg/international/south-koreas-early-exports-show-resilience-despite-us-tariffs-toll
[2] https://oilprice.com/Energy/Crude-Oil/Why-South-Koreas-Pledge-to-Buy-More-US-Oil-May-Be-Mission-Impossible.html