The ministry held an emergency meeting with officials from the country's major steelmakers, including POSCO and Hyundai Steel, it said in a statement.
Shares of South Korean steelmakers lost ground on Monday, with POSCO and Hyundai Steel falling 3% and SeAH Steel Corp down 6.3% in morning trade.
South Korea was the fourth-biggest exporter of steel to the US, behind Canada, Mexico and Brazil last year, according to American Iron and Steel Institute data.
South Korea, a major US ally, has called for the exemption of tariffs on steel, autos and others items, during talks with the US.
Seoul agreed in late April to craft a trade package by the end of the 90-day pause on Trump's reciprocal tariffs in July, but it has been difficult for negotiators to make big decisions due to a political leadership vacuum.
In late March, Hyundai Steel announced a plan to build a $5.8bn (R104.05bn) factory in Louisiana in response to US tariffs, but the factory will not open until 2029. In April, Hyundai Steel's bigger rival POSCO signed a preliminary deal to make an equity investment in the factory project.
Reuters
South Korea to minimise effect of 50% tariff on steel products: ministry
Image: REUTERS/Kim Hong-Ji
South Korea's industry ministry said on Monday it will respond to the looming 50% US tariff on steel products as part of its trade discussions with Washington to minimise the effect on industry.
US President Donald Trump said on Friday he planned to increase tariffs on imported steel and aluminium to 50% from 25%, ratcheting up pressure on global steel producers and deepening his trade war.
The ministry held an emergency meeting with officials from the country's major steelmakers, including POSCO and Hyundai Steel, it said in a statement.
Shares of South Korean steelmakers lost ground on Monday, with POSCO and Hyundai Steel falling 3% and SeAH Steel Corp down 6.3% in morning trade.
South Korea was the fourth-biggest exporter of steel to the US, behind Canada, Mexico and Brazil last year, according to American Iron and Steel Institute data.
South Korea, a major US ally, has called for the exemption of tariffs on steel, autos and others items, during talks with the US.
Seoul agreed in late April to craft a trade package by the end of the 90-day pause on Trump's reciprocal tariffs in July, but it has been difficult for negotiators to make big decisions due to a political leadership vacuum.
In late March, Hyundai Steel announced a plan to build a $5.8bn (R104.05bn) factory in Louisiana in response to US tariffs, but the factory will not open until 2029. In April, Hyundai Steel's bigger rival POSCO signed a preliminary deal to make an equity investment in the factory project.
Reuters
READ MORE:
EU threatens countermeasures over Trump's steel tariffs hike
South Africa needs to export to Brics, other regions in wake of US tariffs
Trump’s tariffs to remain in effect after appeals court grants stay
US court blocks most Trump tariffs, says president exceeded his authority
Green steel is distant and expensive, but teal steel is coming
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
News and promos in your inbox
subscribeMost read
Latest Videos