Trump Doubles Steel Tariffs: What It Means for South Korea and the Global Market

 U.S. Doubles Steel Tariffs: Trump’s Two Strategic Motives Explained

On June 4, the United States officially doubled its import tariffs on steel and aluminum from 25% to 50%, placing major pressure on exporters like South Korea. The move, just weeks before the reciprocal tariff exemption expires, is seen as part of former President Donald Trump’s broader economic and political agenda.

The decision appears to serve two key purposes:

1. Protecting Domestic Steel

• Trump is aiming to support U.S. steelmakers—especially after approving the controversial Nippon Steel-US Steel merger, which sparked backlash among U.S. labor unions and domestic steel companies.
• This sharp tariff increase is interpreted as a “consolation prize” for firms like Cleveland-Cliffs, which lost the US Steel bid and are struggling with job cuts and plant closures.

2. Accelerating Trade Deals

• By maintaining the 25% tariff for trade partners like the UK (until July 9), Trump is incentivizing other countries to speed up bilateral trade negotiations. Countries without deals face the full 50% tariff, making negotiations more urgent.

For South Korea, the new 50% tariff could significantly disrupt steel exports. In 2023, Korea exported $2.9 billion worth of steel to the U.S., making up nearly 9% of its total global steel exports.

As Trump stated, “At 25%, some could jump the fence. At 50%, no one can.” But critics warn this may not generate jobs—Cleveland-Cliffs, for instance, is still cutting workers despite potential tariff benefits.

Meanwhile, U.S. domestic steel prices have already risen 16% since Trump’s return, according to the Associated Press, raising concerns about inflation and downstream costs.

The new tariffs, combined with uncertain trade negotiations, create massive uncertainty in global steel markets—especially for allies like the UK and South Korea who now face tough decisions under mounting pressure.

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