[Alpha Biz= Kim Jisun] Seoul, August 24, 2025 – South Korea’s exports of steel and electric vehicles (EVs) to the United States collapsed in July as the Trump administration’s tariff hikes sharply eroded competitiveness.
According to the Korea International Trade Association (KITA), Korea’s steel exports to the U.S. fell 25.9% year-on-year to USD 283 million (KRW 392.6 billion) in July, marking the steepest decline since January 2023. Export volume dropped 24.3% to 194,000 tons over the same period.
The decline followed Washington’s decision to double tariffs on foreign steel and aluminum products from 25% to 50% starting in June. From March through May, when tariffs were first introduced, Korean exports had held steady at about 250,000 tons per month. However, shipments plummeted once the higher tariff rate took effect.
Export prices also weakened. The average unit price of Korean steel shipped to the U.S. slid from USD 1,915 per ton in 2022 to USD 1,476 in 2023, and further down to USD 1,269 per ton in June 2025, as suppliers cut prices to offset tariff costs. Meanwhile, Japan’s Nippon Steel – now owner of U.S. Steel – has announced plans to double U.S. production within 3–5 years, raising concerns about a further squeeze on Korean market share.
EV Exports Near Standstill
The EV sector has been hit even harder. Korea exported only 164 EVs to the U.S. in July, a staggering 97.4% drop from 6,209 units a year earlier, and the lowest monthly level since Korea began large-scale EV exports in 2021.
By contrast, Korea’s total global EV exports rose 12.3% year-on-year to 20,000 units, underscoring that the collapse was U.S.-specific. The plunge coincides with Washington’s 25% tariff on foreign-made vehicles imposed in April, which has accelerated Hyundai Motor Group’s shift to local production at its Hyundai Motor Group Metaplant America (HMGMA) facility in Georgia. The plant currently produces models including the IONIQ 5 and IONIQ 9.
알파경제 Kim Jisun (stockmk2020@alphabiz.co.kr)
