Global Trade Tensions Rise: Steel and Aluminium Tariffs Impact Asian Exporters

Increased U.S. tariffs on steel and aluminium imports to 50% have led to significant losses in stock for South Korean and Vietnamese steelmakers, major exporters to the U.S. This move by the Trump administration intends to intensify ongoing global trade tensions.

The tariff announcement adds pressure on South Korean exporters, who have already been cautious in increasing exports due to scrutiny from Washington. Despite the tariffs, South Korea's steel exports to the U.S. saw a 12% rise in April. An emergency meeting was held by South Korea's Industry Ministry with major steel companies as they seek to mitigate the impact.

Further complicating matters, political uncertainties in South Korea are hampering rapid resolutions. Meanwhile, Hyundai Steel plans a new factory in Louisiana, and POSCO is investing in the project, highlighting ongoing strategic adjustments. Similar challenges are faced by India, which relies heavily on the U.S. for aluminium exports.

(With inputs from agencies.)