United States exempts South Korea from steel import tariffs, but imposes import share. The US and South Korea have reached an agreement on revising their trade deal.
The two countries reached agreement “in principle” on the trade deal known as Korus, South Korea’s Trade Ministry said in a statement on Monday.
While Korea avoids the steel tariff, shipments of the metal to the US will be limited to a share of about 2.7 million tonnes a year, according to the statement.
“Mr Mnuchin said that “South Korea will reduce the amount of steel that they send into the United States as a part of this.”
The quota is unlikely to hurt South Korea’s steel exports as sales to the US account for 11 per cent of total steel shipments overseas, the South Korean ministry said. The quota is set at 70 per cent of the average steel sales to the US during 2015-2017.
Seoul Korea’s trade surplus with the US was about US$18 billion last year according to the Korea International Trade Association.
The two countries were able to reach the agreement by narrowing the range of discussions and will seek to settle the details soon, the ministry said.