Asia braces for potential 25% US tariffs on steel, aluminum imports

Asia is bracing for potential 25% tariffs promised by US President Donald Trump from Feb. 10 on all steel and aluminum imports into the country, which could impact markets such as Australia, South Korea and Vietnam.

Japan, South Korea, and Vietnam are key steel exporters to the US, while Australia is a major exporter of aluminum.

On Feb. 9, from Air Force One, Trump said he planned to announce his tariffs plans on Feb. 10, according to media reports. The move mirrors the 25% tariffs on steel and 10% tariffs on aluminum imposed in 2018.

A spokesman from South Korea's Ministry of Trade, Industry and Energy (MOTIE) told S&P Global Energy Feb. 10 that it is "closely monitoring the situation" but did not have further comments regarding the US tariff plan.

The South Korean government plans to conduct an emergency meeting on Feb. 10 to discuss the situation.

"It's early days, and we are still working to understand the impact of any potential tariffs on Australia's trade portfolio," Marghanita Johnson, chief executive officer to Australian Aluminium Council, told Energy. "We will continue working with the Australian government and its representatives on this important issue."

On average, Australia exports around 10% of its 1.5 million mt aluminum production to the US each year. Australia accounts for an average of about 2.5% of total US imports of aluminum by volume.

Data from the US International Trade Administration showed that the US imported 82,801 mt of aluminum for domestic use from Australia in 2024.

Any potential US tariffs may have a limited impact on China's aluminum industry chain but could affect some exports of China's aluminum wares. China exported 527,250 mt of aluminum wares to the US in 2024, accounting for 16.3% of China's total aluminum wares exports, customs data showed.

China exported 259,412 mt of aluminum products to the US in 2024, accounting for 4.1% of its total aluminum products exports, according to state-owned research agency Antaike.

As for steel imports in 2024, the US imported about 2.55 million mt from South Korea, 1.24 million mt from Vietnam and 1.07 million mt from Japan, the ITA data showed.

China exported about 892,000 mt of finished steel to the US in 2024, up 5.5% on the year, data from CEIC showed.

However, the steel exports to the US accounted for only 0.8% of China's total steel exports, and thus, the 25% tariff hikes on steel will have almost no direct impact on China's export market, said several Chinese steel traders.

Both Japan and South Korea have established "help desks" to provide support for companies ahead of the possibility of tariffs.

Japan's Ministry of Economy, Trade and Industry has set up a "Japanese Companies Consultation Desk Regarding US Tariff Measures, etc." at the Japan External Trade Organization (JETRO) while South Korea's MOTIE set up a desk at the KOTRA (Korea Trade-Investment Promotion Agency) Trade Center.