The United States’ anticipated 25 percent tariff on steel imports has forced South Korean steel makers to delay steel delivery to their American customers, hanging on hopes for last-minute change of mind from President Donald Trump to excuse America’s key ally from the sweeping tariff action on grounds of national security concerns.

Dongkuk Steel Mill Co. said Thursday that it will temporarily halt its steel shipments to the U.S. in April and watch how the negotiation between Seoul and Washington over the new steel tariff progresses. The company is also in talks with its American customers over sharing the increased tariff burden.

Earlier this month, the U.S government announced it will impose a preliminary 25 percent tariff on all steel imports, citing national security concerns based on Section 232 of the Trade Expansion Act. It will start levying the anti-dumping duties on March 23. The Seoul government has vowed to take all possible actions to resolve the trade issue and is seeking to adjust terms with the U.S. government.

Dongkuk Steel Mill exported 130 billion won ($121.7 million) worth of galvanized steel sheets, its mainstay product, to the U.S. last year after paying 8.75 percent anti-dumping duty for them.

A Dongkuk Steel Mill official said that the company is not giving up the U.S. market and will resume exports after finishing its talks with customers. Meanwhile, the company will seek to diversify its export destinations other than the U.S. to offset losses incurring from the U.S. anticipated duties on steel imports.

The country’s top steel maker Posco also has postponed its U.S. shipment schedule for next month as it is negotiating with its clients on sharing the increased tariff. Another leading player Hyundai Steel Co. said it will continue to ship its steel products to its American customers for now but may change its plan for next contracted shipment.

The mid-sized player Husteel has stopped one of its seven steel production lines at its Danjin steel mill in central Korea early this month. The halted line produces steel tubes used in oil wells. All of its monthly output of about 7,000 tons worth nearly 100 billion won per year is dedicated to U.S. customers.

A Husteel official also said its production halt is only temporary and will resume its operation later after watching the progress of the negotiation between Seoul and Washington.

Dongkuk Steel Mill shares closed Friday down 0.99 percent at 10,000 won. Those of Posco ended up 1.33 percent at 342,000 won and Hyundai Steel shares down 0.39 percent at 50,700 won. Husteel stocks finished up 2.3 percent at 13,350 won.

By Woo Je-yoon and Cho Jeehyun

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