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Government gathers urgent session to strategize a reaction towards proposed increase in U.S. steel tariffs.

U.S. steel tariff increase triggers crisis talk with domestic steel producers, as per the Ministry of Trade, Industry and Energy, following the decision to boost import tariffs to 50% starting this week.

,   and  ASMedia
2 min read
Major steel companies in the local region convened in an emergency gathering on Monday, organized...
Major steel companies in the local region convened in an emergency gathering on Monday, organized by the government, to deliberate upon the potential repercussions arising from the United States' imminent decision to boost import tariffs on steel to 50 percent, as per the Ministry of Trade, Industry and Energy's announcement.

Government gathers urgent session to strategize a reaction towards proposed increase in U.S. steel tariffs.

Steel giants POSCO and Hyundai Steel planning U.S. plant to dodge Trump's steel tariff

In response to potential steel tariffs lurking in the US, Korean steel titans POSCO and Hyundai Steel are cooking up a strategic move - setting up shop in the land of the free. The duo is considering a joint investment in Hyundai's proposed $5.8 billion steel plant in Louisiana, with a projected commencement of construction in 2026 and operations kicking off in 2029.

This plan isn't just a pipe dream; it's a strategic response to the threat posed by anticipated US tariffs, such as those once proposed by Former President Trump, that could jeopardize Korean steel exports to the US. By setting up a plant in the US, POSCO can supply steel and battery materials directly to Hyundai's major US automotive plants, effectively dodging those tariffs and bolstering local supply chains.

The Korean government and industry leaders are keeping a sharp eye on the US tariff situation, with emergency meetings gathered to brainstorm strategies to tackle the announced tariff hikes. With POSCO strengthening its stance, the future of steel exports between the two nations might just shake things up.

So buckle up, folks — it looks like the steel game is about to get a whole lot more interesting.

Enrichment Insights:- POSCO and Hyundai, the two largest Korean steelmakers, are partnering to build a steel plant in the US as a direct response to potential steep tariffs, including a 50% tariff under a possible second Trump administration.- The US-based production will enable POSCO to supply steel and battery materials to Hyundai’s major US automotive plants, bypassing tariffs and fortifying local supply chains.- Korean government and industry leaders are closely watching the US tariff situation, even holding emergency meetings to devise strategies for responding to announced tariff increases.

  1. The proposed steel plant collusion between POSCO and Hyundai Steel in the United States could potentially be a maneuver to circumvent government-implemented steel tariffs.
  2. In light of anticipated US tariffs, such as the 50% tariff under a potential second Trump administration, Korean giants POSCO and Hyundai are seeking to establish a domestic presence to supply steel and battery materials to their US automotive plants, thereby avoiding any tariff implications.
  3. As POSCO advances its plans to strengthen its presence in the US, the Korean government and industry leaders have ramped up efforts to monitor the ongoing US tariff situation, considering the potential impact on Korean steel exports and engaging in emergency meetings to devise strategies addressing announced tariff hikes.

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