Acting Korean President Said Government Will Respond to Trump’s 25% Tariffs on Steel
It will be interesting to see if these tariffs lead to an invigoration of steel manufacturing in the U.S.:
Acting President Choi Sang-mok said Tuesday the government will respond to the new U.S. tariffs on steel imports based to its pre-prepared measures and pursue further negotiations with Washington to reflect South Korea’s interests.
On Monday (U.S. time), U.S. President Donald Trump signed proclamations imposing a 25 percent tariff on all imported steel and aluminum products, effective March 12, with “no exceptions or exemptions.” The tariffs will apply to millions of tons of steel and aluminum imports, including those from South Korea.
You can read more at the link.
They can respond sensibly or they can hurt Korean business.
“Acting President Choi Sang-mok said Tuesday the government will respond to the new U.S. tariffs on steel imports based to its pre-prepared measures.”
Pre-prepared measures:
– 아이고
– 왜 그래
– 아이고 (again)
This simplifies a very complex situation from Trump’s first term.
It was set up so all steel-exporting countries had to compete with each other in various concessions to maximize their share of a limited total amount of duty-free steel imports. It was quite clever, actually. And it is far too nuanced for most Americans to understand, so the media didn’t even try.
With this increase in tariffs for everyone, it should give the necessary incentive to restart domestic production.
Much of that domestic production will be wise steel producers from Korea and Japan becoming junior partners in America’s new steel industry.
They will win, as they will continue getting a share of American steel consumption profits at the expense of those who only try to export.
Japan is unvesting in US Steel… instant industry player.
Hyundai is considering building a new mill… a bit late to the party… but can probably get an interim tariff reduction if they are acting in good faith.
American steel production will benefit from the latest technology in which it has fallen behind.
Steel production is not a strategic industry you want to fall behind in.
This will be great for America and, if played correctly, good for Korean and Japanese industry as well.