Domestic steel stocks all fell 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, Hyundai Steel closed at 21,700 KRW per share, down 2.03% from the previous session. POSCO Holdings ended the day at 237,000 KRW, down 0.84%. During the morning session, it briefly dropped to 227,500 KRW, hitting a 52-week low, but later recovered much of the losses.
Daehan Steel recorded 15,000 KRW, down 3.91% from the previous close. Dongkuk Steel and SeAH Besteel Holdings also slid by 3.77% and 3.66%, respectively. Korea Steel (-1.27%) and Korea Iron & Steel (-0.72%) also showed declines.
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 Bloomberg and other foreign media, on the 9th (local time), President Trump told reporters, "Any steel coming into the United States will be subject to a 25% tariff."
If a uniform additional 25% tariff is imposed on steel products as President Trump mentioned, it will inevitably become a burden for Korean companies exporting to the U.S. Currently, Korea enjoys a "2.63 million tons tariff-free" quota for 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.
Choi Yong-hyun, a researcher at KB Securities, said, "Negative impacts on the steel industry are inevitable, but the tariff level is expected to be lower than what has been announced so far," adding, "The most negative factor currently affecting stock prices is political uncertainty." However, he also noted that since domestic steel companies have already negotiated tariff-related issues during Trump’s first term, a quick compromise is likely to be reached.
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