South Korea plans to strengthen controls on metal imports to protect its producers from potential dumping in the domestic market, after US President Donald Trump moved forward with 25% tariffs on steel and aluminum imports from around the world.

South Korea, a major metals producer in Asia, refrained from taking any immediate retaliatory steps after the steel tariffs took effect on Wednesday. Instead, it opted for diplomacy, sending its trade minister to Washington to accelerate negotiations with the Trump administration and pledging to develop measures to support its companies by the end of this month.

The latest tariffs follow trade measures implemented during Trump’s first term. This time, the tariffs eliminate exemptions previously granted to many countries and extend them to new product categories. South Korea was among the countries that received exemptions during Trump’s first term.

Steel Surplus: A New Threat
The risk facing steelmakers around the world is that tariffs could exacerbate the oversupply, increasing pressure on producers and governments while demand for steel is volatile (even before the tariffs are imposed).

Some governments have already tightened controls on product flows, and earlier this week, Taiwan launched an anti-dumping investigation into some steel products from China.

South Korean Industry Minister Ahn Duk-kyun held a meeting with business leaders on Thursday to discuss ways to strengthen their joint response to the US tariffs. He urged companies to communicate effectively with relevant authorities in the United States and immediately share details of their discussions with the government.

The Ministry of Trade, Industry and Energy said in a statement that the government will develop a plan to address unfair imports based on that meeting. The measures include intensifying import controls and evasion efforts, according to the ministry.

Korea Prepares for Steel Fluctuations
On the same day, Acting South Korean President Choi Sang-mok held a separate meeting with senior policymakers, urging them to prepare for possible market disruptions following the implementation of US tariffs.

“Choi called for maximum efforts in negotiations with the US and ordered officials to ensure that the rapid flow of steel materials, which cannot be exported to the US and other countries, does not cause disruptions to the domestic market,” his office said in a statement.

Donald Trump said last week that South Korea imposes more unfair tariffs on US products than China, criticizing its subsidies to chipmakers like Samsung Electronics.

South Korea rejected this claim, saying its effective tariff on US imports was 0.79% last year, thanks to the free trade agreement that took effect in 2012.

Upcoming Meeting in Washington
South Korea’s trade minister is in Washington this week for a meeting with his US counterparts to discuss trade issues. South Korea, Asia’s fourth-largest economy, relies heavily on trade for growth, and its largest companies generate the bulk of their revenues from overseas markets.