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The Trump administration has announced a significant restructuring of U.S. tariffs on steel, aluminum, and copper imports, moving to a system based on the full customs value of goods rather than the metal content value. The changes, signed by President Donald Trump on Wednesday, also include a new 100% tariff on patented pharmaceuticals not produced in the United States, though several key trading partners—including South Korea, Japan, Switzerland, and the European Union—have been exempted. The adjustments have drawn mixed reactions from South Korean officials, who acknowledge reduced administrative burdens for companies while warning of potential increases for certain industries.
Coverage Comparison
All reporting on this story comes from Yonhap News, the South Korean wire service, which has provided extensive coverage from both Washington and Seoul. The Washington-based reports detail the official U.S. announcements, while the Seoul-based pieces focus on the implications for South Korean industries. Reports from Seoul highlight the perspective of the Ministry of Trade, Industry and Resources, which has assessed the impact as mixed, with some sectors benefiting from simplified tariff calculations and others, such as certain machinery and home appliances, potentially facing higher duties. The Washington dispatches emphasize the official U.S. rationale—national security and the need to address artificially low foreign pricing—and provide specific details on the pharmaceutical tariff exemptions.
Key Claims
Metal Tariffs: New Structure and Rates
Under the new tariff system, imported products made entirely or almost entirely of steel, aluminum, or copper will be subject to 50% duties based on their full customs value, as reported by multiple Yonhap articles citing senior U.S. officials. Derivatives substantially made of these materials will face 25% tariffs, while products containing 15% or less of these metals will be exempt from the sectoral duties. The administration says these changes are intended to simplify the duty calculation process, which previously relied on the value of metal content in each product—a more complicated method. The White House, in a fact sheet quoted by Yonhap, stated that the changes ensure tariffs reflect "the full value of imported steel, aluminum, and copper products—not an artificially low foreign price."
The new rates took effect at 12:01 a.m. Monday (Washington time), according to a Yonhap report citing the presidential proclamation.
Pharmaceutical Tariffs and Exemptions
Separately, President Trump signed a document imposing a 100% tariff on patented pharmaceuticals that are not made in the United States and do not have Most-Favored-Nation (MFN) status, according to a senior U.S. official speaking in a telephonic briefing. However, the official confirmed that South Korea, Japan, Switzerland, and the European Union are not subject to this tariff because they have bilateral trade deals with the U.S. The same official detailed exceptions: companies that commit to building a pharmaceutical plant in the U.S. will see their tariff reduced to 20%, and if the plant is built in a country with an MFN agreement with the U.S., the tariff could drop to zero.
Impact on South Korean Industries
South Korea's Ministry of Trade, Industry and Resources held an emergency meeting with industry representatives on Friday to discuss the potential impact. Trade Minister Yeo Han-koo said the changes would likely reduce the overall administrative burden on South Korean companies and reduce uncertainties related to customs clearance. But he also vowed to remain vigilant, as the U.S. may add more derivative products to the tariff list after a planned review.
The ministry's analysis, reported on Monday, indicates that the impact will be mixed by item. Key exports such as ultra-high-voltage transformers and certain machine tools will see tariffs reduced to 15% from 25%. Cosmetics and food products have been excluded from the derivatives category entirely and will now face only the universal 10% tariff rate. Products with high metal content that previously faced rates above 30% will now be subject to a flat 25% rate, which the ministry describes as a modest advantage. Washing machines, a major South Korean export, are expected to see limited impact since Korean companies already manufacture a large portion in the U.S. However, the ministry cautioned that some machinery and home appliance items may face increased tariff burdens due to the new calculation method.
Perspectives
U.S. Administration: The White House frames the tariff adjustments as a necessary strengthening of measures to address the national security threat posed by imports. Officials emphasize the simplification of the duty process and the need to stop foreign exporters from artificially reducing prices.
South Korean Government and Industry: While acknowledging the reduced administrative burden, South Korean authorities are focused on the differential impact across industries. They are preparing support measures for companies that may face higher costs and are monitoring potential future expansions of the tariff list.
International Trading Partners: The exemption for South Korea, Japan, Switzerland, and the EU from the pharmaceutical tariff suggests that bilateral trade agreements are recognized as a pathway to avoid the highest duties. However, it remains unclear how other countries without such agreements will be affected.