South Korea Responds to Canada’s Steel Tariff Changes
South Korea has expressed significant concerns over Canada’s newly announced protective measures on steel. Deputy Trade Minister Park Jeong-seon met with Canada’s Deputy Minister of Innovation, Science, and Economic Development, Alexandra Dostal, in Seoul. During the meeting, Park highlighted that these new tariffs could add more pressure to the already struggling South Korean steel industry, especially amidst global oversupply and increasing trade protectionism. Park urged Canada to reconsider or scrap these new measures as they could negatively affect trade relations and investments between the two countries.
Key Changes in Canada’s Steel Tariff Policy
Canada’s new protective measures will significantly reduce tariff quotas on steel for countries with a free trade agreement (FTA), including South Korea. As of December 26, these quotas will decrease from 100% to 75% of the 2024 level. Additionally, a 25% tariff will be applied to imports of steel derivatives. This adjustment follows Canada’s broader strategy to shield its local steel industry from global market pressures. While Canada justifies these changes as necessary for the survival of its domestic steel sector, South Korea’s steel producers are concerned about the potential impact on their operations.
Economic Impacts and Investment Concerns
The proposed changes in Canada’s steel tariff policy could significantly harm South Korean companies that have invested in the Canadian market. Park emphasized that these tariffs might undermine existing and planned investments, damaging economic cooperation between the two countries. According to the Korea International Trade Association, South Korea exported about 620,000 tons of steel worth $780 million to Canada in the past year. As a result, the new tariffs could harm trade dynamics and the economic relationship between these two key partners.
SuperMetalPrice Commentary:
Canada’s decision to impose additional protective measures on steel could create tensions between South Korea and Canada, especially regarding trade and investment. South Korea’s concern about the new tariff structure underscores the ongoing challenges facing the global steel market, including trade protectionism and oversupply issues. While Canada’s protective measures aim to support its domestic steel producers, this could create ripple effects that hinder foreign investment, particularly from countries like South Korea, which are deeply embedded in the Canadian market. The situation reflects broader geopolitical tensions in global trade that could affect the dynamics of international steel markets in the coming months.
Leave a Reply
You must be logged in to post a comment.