Worldwide Steel War LoomsThe bilateral trade friction in the steel industry between the U.S. and Japan is expected to embroil Korean steel producers.
The revision of Article 201 that is before the U.S. Congress will be applied to Korea as well as Japan, the main target of the revision.
If it passes, immediate tarriffs and quota restrictions on specific steel products will be imposed.
A source at POSCO, Korea's major steelmaker, said, 'If the U.S. begins to use Article 201, we cannot help but shift our exports to Europe. This will cause trade friction between Europe and will escalate to a worldwide, steel war involving the U.S., Europe, Japan, China, and Korea.'
The government dispatched a delegation to the U.S. and delivered a message that Korea will reduce steel exports. In fact, Korean steelmakers plan to reduce exports on average by 4.7 percent this year.
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