The U.S. government’s sudden decision to double tariffs on imported steel and aluminum has left South Korean exporters reeling. U.S. President Donald Trump signed a proclamation on June 3 raising tariffs from 25% to 50%, effective at 12:01 a.m. on June 4. The hike took effect just five days after the initial announcement, applying even to steel shipments already en route to the U.S.
The tariff hike was first announced on May 30 during Trump’s visit to a US Steel plant in Pittsburgh, Pennsylvania, and went into effect only five days later. In contrast, the original 25% tariff imposed in March took one month before enforcement.
A South Korean steel industry official said, “The increase was so abrupt that we couldn’t respond. Even the day after the announcement, it was unclear whether the tariff would apply based on shipment or arrival.”
The 50% tariff on steel products is finalized during customs clearance upon arrival in the U.S. Steel shipments typically take six to eight weeks to reach U.S. ports from South Korea. This means products shipped expecting a 25% tariff will now face the doubled rate.
South Korean steelmaker HiSteel said, “We had no choice but to proceed with the shipment. Canceling would mean losing the client. We are still discussing how to respond.”
Under U.S. rules, tariffs are usually applied based on the customs declaration date, but sometimes the arrival or shipping date is used. Some goods remain in bonded zones for inspection before final clearance.
Korean steel exporters estimate the additional burden from the tariff hike could cost them hundreds of billions of won annually. South Korea’s steel exports to the U.S. reached about $220 million (298 billion won) in May and $250 million (339 billion won) in April.
An industry source said, “The worst-case scenario would be recalling shipments already en route, but no decision has been made. Now that we have a new president, the negotiation team needs to chart a course forward.” Another steel official added, “Local importers might share some of the tariff burden, but their capacity is limited. Companies have no effective response options right now.”
A Ministry of Trade, Industry and Energy official said, “We have expressed concerns to the U.S., but they remain firm on Section 232 of the Trade Expansion Act. We will continue to voice our objections and explore solutions.” Section 232 allows the U.S. administration to impose tariffs if imports threaten national security.
