World Steel War on US Safeguards

‘Steel War’ on US Steel Safeguards has begun to look ceased. Disputers such as US, Japan and EU have tried to find solutions in succession.

Domestic steel industry is glad about this relief atmosphere of international steel disputes saying that the Korean trading environment could be improved.

On June 19, the economic circles said that US announced to exclude 46 steel products from the safeguards on foreign steel products (reported in March) on June 27 (local time). Before that, US took measures to exclude 61 products from the subject of the steel safeguards in the beginning of this month.

US government announced that additional products would be excluded from the safeguards soon.

Domestic and foreign steel industries said “US government changed a policy to relieve the safeguards due to rebelling steel-demanding companies as the US steel price sharply has increased after announcing the safeguards”.

Japan and EU also have taken a similar relief action, and lowered an attack against US.

On June 13, Japan announced that it would levy a high tariff of 100% on US steels in revenge for US safeguards from June 18.

Also, EU planed to levy the revenge tariff amounted to USD 0.3 billion on US steel products from June 18, if US doesn’t make a concession to the steel safeguards. However, UE postponed the decision of tariff levy until next month after US announced the relief actions on safeguards.

Domestic steel companies expect that an export environment will be improved when the steel war is relieved.

“US estimated that the steel price would increased by 15% as applying the safeguards, but the price of Hot rolled sheet which was USD 230 per ton at the end of the last year rises suddenly to USD 269. So the US government cannot take the strict position on safeguards because the steel-demanding companies such as a motorcar and electron have rebelled” said the staff number of POSCO.

“China also will have to have an appeasement policy. Korea must be happy about it” mentioned Gim Seong-u, a leader of Trade team.

Chi-Young Shin higgledy@donga.com