U.S. President Donald Trump’s decision to impose a 25% tariff on all aluminum imports has alarmed South Korean aluminum manufacturers, mostly small and medium-sized firms.
While some believe the impact may be limited since the measure primarily targets China, experts argue that Chinese aluminum has already been shut out of the U.S. market due to existing high tariffs. Instead, they fear that the new tariff could disproportionately hurt smaller domestic aluminum companies by making it harder for them to compete with U.S.-made products.
Aluminum is a critical material used across multiple industries, from consumer packaging to auto parts, aircraft components, and anodes for secondary batteries. Yet, U.S. domestic production remains insufficient to meet demand. Despite investing more than $10 billion to expand local output over the past decade, American manufacturers still supply only about one-third of domestic demand, relying on imports for the rest.
China, which accounts for roughly 60% of global aluminum production, has ramped up exports on the back of government subsidies and tax rebates, prompting both the first Trump administration, the Biden administration, and the second Trump administration to slap tariffs on Chinese aluminum products.
Korean aluminum exports to the U.S. were previously subject to a 10% tariff under Trump’s first term but benefited from an exemption that effectively allowed duty-free shipments. The country’s aluminum industry is made up of around 540 manufacturers, most of them small or mid-sized firms. Korean aluminum exports to the U.S., including parts, amounted to approximately $1.02 billion last year, accounting for about 20% of the country’s total aluminum exports, according to the Korea Nonferrous Metals Association.
Having competed in the U.S. market under tariff-free conditions, a 25% tariff would be a severe blow to these companies. “Korean products are superior in quality to those made in the U.S., but a 25% tariff-induced price gap will be impossible to compete against,” said an official from the Nonferrous Metals Association. “Small firms will be the first to suffer.”
