Seoul: POSCO, a leading steel manufacturer in South Korea, is evaluating the possibility of investing in Hyundai Steel Co.'s upcoming steel mill project in the United States. This move is part of a strategic effort to mitigate the impact of U.S. President Donald Trump's extensive tariffs on steel and aluminum imports, as indicated by industry sources.

According to Yonhap News Agency, Hyundai Steel announced plans last month to invest $5.8 billion in constructing an electric arc furnace-based integrated steel mill located in Louisiana, with production slated to commence by 2029. This initiative follows the imposition of a 25 percent tariff on steel and aluminum imports by Trump in mid-March.

An industry source closely connected to the situation informed Yonhap News Agency, "POSCO is considering a stake investment in the Hyundai Steel project." Earlier this month, POSCO had expressed that it was giving "serious consideration" to potential investment opportunities in "upstream steel processes" within the United States.

In response to inquiries regarding its possible investment in Hyundai Steel's project, POSCO stated that it is exploring multiple options but has yet to make a definitive decision. Meanwhile, Hyundai Steel has outlined plans to finance half of the U.S. plant investment through corporate bond sales and loans from financial institutions.