[Special Report] Domestic Steel Stocks Weaken Amid US 25% Tariff Announcement

Domestic steel stocks showed a unified decline on the 10th following news that the Donald Trump administration in the United States decided to impose a 25% tariff on steel products.

According to the Korea Exchange, as of 2:12 PM on the same day, Daehan Steel was trading at 14,780 KRW per share, down 5.32% from the previous close. Dongkuk Steel also recorded a 3.65% drop to 7,920 KRW. Hyundai Steel (-2.26%) and SeAH Besteel Holdings (-3.44%) also showed downward trends.

POSCO Holdings, which had fallen to a 52-week low of 227,500 KRW per share during the morning session, later recovered some losses and was trading at around 237,000 KRW, down 0.63% from the previous close.

This weakness in steel stocks is due to President Trump’s announcement that, following his first term, he plans to impose tariffs on all steel and aluminum products imported into the United States. According to foreign media including Bloomberg, on the 9th (local time), President Trump told reporters, "Any steel coming into the United States will be subject to a 25% tariff." Specific measures are expected to be announced on the 10th local time.

If, as President Trump mentioned, a uniform additional 25% tariff is imposed on steel products, it will inevitably become a burden for Korean companies exporting to the U.S. Currently, Korea benefits from a "2.63 million ton tariff exemption" on steel exports to the U.S., but there is a possibility that a 25% tariff will be applied here in the future. Additionally, President Trump has announced plans to declare reciprocal tariffs targeting the entire world between the 11th and 12th.