Washington:A White House official has accused South Korea of inundating the U.S. market with heavily subsidized steel products and steel transshipped from China, prompting Washington to take action against these alleged practices.
According to Yonhap News Agency, Peter Navarro, the White House senior counselor for trade and manufacturing, expressed these concerns on the social media platform X. Navarro shared a video clip of his conversation with reporters, in which he specifically called out South Korea for flooding the American market with subsidized Korean steel and transshipped steel from China.
Navarro highlighted that, despite the U.S. imposing high tariffs of 50 percent on steel, these measures are being bypassed, which he attributed to unfair practices. He indicated that the U.S. administration is preparing to address these issues.
Foreign steelmakers operating in the U.S. are subject to tariffs under Section 232 of the Trade Expansion Act of 1962. This legislation permits the U.S. president to adjust imports that are considered threats to national security, alongside other trade remedy measures.
In a related development, South Korean Industry Minister Kim Jung-kwan recently urged the U.S. to consider the challenges faced by Korean companies investing in America. He requested support for these projects by reducing tariffs on necessary equipment and materials from South Korea.
Additionally, last month saw the groundbreaking of an electric arc furnace-based integrated steel mill in Louisiana by Hyundai-POSCO Louisiana Steel LLC, a joint venture between South Korea's Hyundai Motor Group and POSCO Holdings. This project is part of Hyundai's $26 billion U.S. investment plan and is expected to be completed by 2029, with POSCO holding a 20 percent stake in the venture.
