SEOUL: The USâ€™ third-biggest steel supplier South Korea will ask Washington for an exemption from President Donald Trumpâ€™s new tariffs and consider filing a complaint to the World Trade Organization if it is refused, Seoul said Friday.
Trump imposed steep tariffs of 25 percent on foreign steel and 10 percent on aluminum Thursday, drawing sharp protests from allies at home and abroad amid fears of a global trade war.
South Korean trade minister Paik Un-gyu expressed his regret at the move in a meeting with steel executives, saying: â€œIf this action takes effect, it would inevitably deal a serious blow to South Koreaâ€™s steel exports to the US.â€�
The South is a treaty ally of the US, which has 28,500 troops stationed in the country to protect it from the nuclear-armed North but has found itself on the receiving end of Trumpâ€™s â€œAmerica Firstâ€� economic agenda.
A free trade agreement between the two is being renegotiated at Washingtonâ€™s behest, and talks are currently taking place in Hawaii on cost-sharing for the US military presence, after Trump said on the campaign trail that Seoul should pay more.
The trade ministry will seek consultations with the US Trade Representative at an early date to ask for reduced or no tariffs on the countryâ€™s steel products, it said in a statement.
If it is unsuccessful, it will â€œactively considerâ€� filing a complaint with the WTO in cooperation with other countries, it added.
Other nations have condemned Trumpâ€™s decision, with China, the worldâ€™s second-largest economy, calling it a â€œserious attackâ€� on the global trading system.
The Hyundai Research Institute said in a report Friday that 25 percent tariffs would lead to a 22 percent cut in South Korean steel exports to the US â€” or almost $1 billion of the nearly $4 billion-worth of steel the South shipped to the US last year.
South Korea ranks third among steel suppliers to the US after Canada and Brazil.