Anchor: After the U.S. Commerce Department recommended that President Donald Trump impose a heavy tariff on imported steel, South Korea's automobile and semiconductor firms have become nervous, wondering if they'll be targeted next.
Oh Soo-young reports.

Report: South Korea's major exporters are growing increasingly concerned they may be hit with U.S. trade protectionist policies.

A 53 percent tariff on steel imports from 12 countries, including South Korea, was among three alternative remedies that the U.S. Department of Commerce recommended to President Donald Trump last Friday regarding stiff trade regulations on steel and aluminum imports. 

Washington has long complained that South Korea is dumping steel rod products in the U.S. market, and that the products contain cheap Chinese steel.

While South Korean steelmakers reduced their exports to the U.S. from five-point-seven million tons in 2014 to three-and-a-half million tons last year, U.S.-bound shipments still accounted for eleven-point-two percent of total exports. This means Korean industries will take a significant blow if the 53 percent tariff is imposed.

The latest pressure comes after the U.S. decided to slap heavy anti-dumping duties on Korean washing machines and solar panels. 

The move has unnerved other export industries, including semiconductor firms and automakers. In the case of semiconductors, various patent infringement probes are under way following complaints filed against South Korean products by U.S. companies.

Last month, the U.S. International Trade Commission began investigating potential violations of tariff laws on data storage devices made by South Korea and China.

The move has sparked speculation that the U.S. is targeting South Korea as Samsung Electronics and SK Hynix together make up the lion's share of the world's memory chip market.

Also, the Korea Trade-Investment Promotion Agency assessed that in a bid to protect its treasured automotive industry, the U.S. will likely target South Korean-made cars which already are a key issue in Seoul and Washington's negotiations on revising their bilateral free trade agreement.

Trump has until April eleventh to make a decision on the tariff recommendations for foreign steel. Under Section 232 of the Trade Expansion Act, the U.S. president has the authority to adjust imports, including through the use of tariffs if excessive foreign imports are deemed a threat to national security. 

South Korea's trade ministry said it will reach out to Washington, pointing out that higher prices on imported steel could backfire on downstream U.S. manufacturers, including those in the automobile sector.
Oh Soo-young, KBS World Radio News.