South Korea’s steel exports to the United States declined sharply last month. The drop followed Washington’s decision to double tariffs on imported steel and aluminum. Consequently, Korean shipments to the US slid both in value and volume. Industry leaders warned that tariff pressures will persist in the near future.
According to trade data, the value of South Korea’s steel exports to the US fell to $283 million. This figure marked a 26 percent decrease compared with the same period last year. Moreover, it represented the lowest level in more than four years. Therefore, exporters face mounting challenges in sustaining profitability.
By shipment volume, exports dropped 24 percent to 194,000 tons. This marked the lowest level since early last year. The figures highlight the combined effect of tariffs and weak demand. As a result, steelmakers are reassessing strategies for the American market.
In response, POSCO and Hyundai Steel announced new plans to build capacity in the United States. Hyundai Steel confirmed a $5.8 billion investment in an electric arc furnace-based integrated steel mill. The facility will be located in Louisiana and begin production once construction is complete. This project signals a significant shift in long-term strategy.
Soon after, POSCO stated it would join the same project. Together, the two largest Korean steelmakers aim to counter tariff risks. By producing steel directly in the US, they expect to secure stronger access to the American market. However, the plant will not operate for several more years.
Therefore, South Korea’s steel exports will continue facing pressure during the transition period. Industry observers believe tariffs will keep restricting trade flows. Consequently, Korean firms must balance domestic production with overseas investments. This balancing act could define their competitiveness for years ahead.
Additionally, the tariff hike reflects broader trade tensions between Washington and global suppliers. The US government argues that the higher rates protect domestic industries. Yet, foreign producers view the move as a challenge to fair competition. Thus, both policy and business responses remain crucial in shaping outcomes.
Executives stressed that diversification remains vital. They emphasized that future plans should include investments across multiple regions. Moreover, steelmakers plan to expand cooperation with American partners to ease market access. South Korea’s steel exports will eventually stabilize once these strategies mature.
