Tariffs take toll as Korea's steel exports to US drop sharply in May

Steel products are stacked at Pyeongtaek Port in Gyeonggi Province on June 4 Yonhap — Steel products are stacked at Pyeongtaek Port in Gyeonggi Province on June 4. Yonhap

SEOUL, June 23 (AJP) - South Korea’s steel exports to the United States fell sharply in May, marking the first significant contraction since Washington imposed new tariffs earlier this year, trade data released Monday showed.

According to the Korea International Trade Association, shipments to the U.S. declined 16.3 percent year-on-year to $327 million, down from $390 million in May 2024. The slump comes as the full effects of the 25 percent tariffs on steel and aluminum, enacted March 12, begin to ripple through the global supply chain.

Prices also tumbled. Export unit prices fell 9.4 percent to $1,295 per ton in May from $1,429 a year earlier.

The month-over-month drop was even steeper: a 14.6 percent decline from April’s $1,517 per ton, suggesting that Korean producers have begun absorbing tariff-related costs in order to preserve market share.

“The structure of the steel trade means there is typically a two- to three-month lag between policy implementation and export data,” said Chang Sang-sik, director of the Korea International Trade Association’s trade research institute. “We’re now seeing the full materialization of tariff impacts, as Korean exporters start shouldering the cost burden to sustain volumes.”

While monthly export volumes have hovered between 240,000 and 250,000 tons for much of the year, the steep price cuts in May indicate a strategic recalibration by South Korean steelmakers such as POSCO and Hyundai Steel. Analysts warn the downward pressure is unlikely to ease.

On June 4, the United States doubled its tariff on South Korean steel to 50 percent, a move expected to further undermine competitiveness and prompt American buyers to turn to alternative suppliers.

Candice Kim candicekim1121@ajupress.com