Seoul: South Korea's steel exports to the United States experienced a significant decline of 26 percent in July compared to the previous year, primarily due to increased tariffs imposed by the U.S. government, a trade association reported on Sunday.

According to Yonhap News Agency, U.S. President Donald Trump increased tariffs on all steel and aluminum imports to 50 percent in June, up from the 25 percent rate set in March. This policy change has had a noticeable impact on South Korean steel exports, which saw a decrease to US$283 million in July from $382 million the previous year, based on data from the Korea International Trade Association (KITA). This export value is the lowest recorded in four years and four months, since March 2021.

In terms of volume, the exports in July fell by 24 percent year-on-year to 194,000 tons, marking the lowest level since January 2023, as per KITA's data. In an effort to counter the effects of the steep tariffs, POSCO and Hyundai Steel Co., South Korea's two largest steelmakers, have announced plans to invest in a steel plant in the U.S.

In March, Hyundai Steel revealed plans to construct a US$5.8 billion electric arc furnace-based integrated steel mill in Louisiana by 2029, with production expected to commence the same year. POSCO announced its intention to join the project in April. Despite these efforts, industry officials predict that the steelmakers will continue to face tariff pressures for several more years, until the new plant becomes operational.