[THE INVESTOR] Local steelmakers on March 23 remained cautious following the US’ decision to hold off imposing a 25 percent tariff on Korean steel until the end of April.

“The temporary exemption is a positive sign, but uncertainty continues, as the decision is not a definitive one,” said the spokesperson of Korea Iron and Steel Organization.

“We will fully support the government to persuade the US for permanent exemption.”

Due to the temporary exemption, tariffs will not be levied on steel and aluminum imported from Korea until the end of next month, when negotiations for a permanent exemption are scheduled to be completed.

US President Donald Trump on March 22 evening, local time, authorized temporary exemptions on steel and aluminum imports shipped from South Korea and six other regions: the EU, Australia, Argentina, Brazil, Canada, and Mexico.

Earlier this month, Trump had signed two proclamations slapping a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports over national security concerns, widely seen as penalties aimed at China.

This had shocked some Korean steelmakers, with Dongkuk Steel temporarily suspending shipments to the US starting April.

“Although the monthlong exemption is a positive move, it hasn’t changed anything for now,” said a spokesperson of Dongkuk Steel.

“We still have to wait for a final announcement to readjust product prices with clients.”

Shipments to the US make up some 3 to 4 percent of Dongkuk Steel’s annual revenue.

It is one of Korea’s top three steelmakers alongside Posco and Hyundai Steel.

Earlier this month, Husteel had also stopped operating its factory line that makes products exported to the US.

Echoing Dongkuk Steel’s stance, Posco and Hyundai Steel said they would wait until a final decision is made, and cooperate with the government for a permanent exemption.

Meanwhile, shares of local steelmakers rose in the morning on the positive market reaction to the temporary tariff exemption.

Dougu Steel’s share price soared 20.43 percent to 13,850 won per stock at 9:05 a.m. compared to March 22’s close. Posco C&C, the steel-sheet making arm of Posco, saw a 2.26 percent increase, and Hyundai Steel 0.59 percent. 

By Kim Bo-gyung/The Korea Herald (lisakim425@heraldcorp.com)