exports

March 20 (Asia Today) — South Korea’s steel industry faces mounting pressure as Britain moves to tighten import restrictions, adding to growing trade barriers in the United States and Europe. Britain said it plans to cut steel import quotas by 60% and raise the tariff on volumes above the quota to 50% from 25%, with the new measures set to take effect July 1.

The tougher British measures have raised concerns about weaker exports and shrinking profitability for South Korean steelmakers. South Korea exported 640,000 metric tons of steel to Britain last year, accounting for 2.3% of its total steel exports, according to the industry ministry.

South Korean companies including POSCO and Hyundai Steel have shipped products such as heavy steel plate to Britain. POSCO said it is reviewing the situation and plans to respond after Britain releases more details on the affected products and volumes. The industry ministry said the move could violate World Trade Organization rules and the Korea-Britain free trade agreement, which provides for tariff-free steel trade, and pledged to work with London to limit damage to Korean companies.

The British action comes as other major markets also harden their trade defenses. The United States raised tariffs on imported steel and aluminum to 50% in June 2025. The European Union is also pursuing a tougher steel regime that would cut tariff-free import volumes by 47% and double out-of-quota duties to 50%.

The broader protectionist shift has already hurt Korean producers. Industry officials say companies are increasingly reliant on government trade talks as barriers rise across major export markets.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260320010006218

March 3 (Asia Today) — South Korea’s exports are riding a semiconductor boom, but lawmakers risk undermining that momentum by delaying legislation tied to a major U.S. investment plan.

According to the Ministry of Trade, Industry and Energy, exports in February reached $67.4 billion, the highest ever for the month, despite fewer working days due to the Lunar New Year holiday. Exports have set new monthly records for nine straight months since June.

Still, vulnerabilities are emerging. Automobile exports fell 20.8% from a year earlier in February, reflecting the impact of U.S. tariffs on specific items. Even after the U.S. Supreme Court struck down reciprocal tariffs, the administration of President Donald Trump has continued to pursue tariff measures. Lawmakers should move swiftly to pass the Special Act on Investment in the United States to remove potential grounds for further trade friction.

Semiconductors once again drove export growth. Chip exports surged 160% from a year earlier to $25.1 billion, marking the third consecutive month above the $20 billion mark. The gains reflect increased artificial intelligence investment by global technology firms and a sharp rise in memory chip prices. The price of DDR4 8Gb DRAM has climbed 863% over the past year, while 128Gb NAND prices have risen 452%.

But heavy reliance on semiconductors has deepened disparities across industries. Of the country’s 15 key export categories, only five posted gains last month, including computers, wireless communication devices, ships and biohealth products. Exports of auto parts, petrochemicals and steel declined amid global oversupply and tariff pressures.

Geopolitical risks add further uncertainty. The recent U.S. airstrikes on Iran have heightened concerns about instability in the Middle East. According to the Korea International Trade Association, every 10% increase in global oil prices reduces South Korea’s export volume by 0.39%. A prolonged conflict could jeopardize the government’s goal of achieving $800 billion in annual exports this year.

Against this backdrop, the ruling Democratic Party and the opposition People Power Party remain locked in a dispute over passage of the Special Act on Investment in the United States, which would support a planned $350 billion investment in America.

On Sunday, Han Byung-do, floor leader of the Democratic Party, warned that his party would take “a major decision” if the opposition continued to block proceedings. The People Power Party has boycotted related committee activities in protest of separate judicial reform bills passed by the majority party.

While the ruling party bears responsibility for pushing through controversial judicial legislation, it is also unwise to hold a bill tied to national economic interests hostage to partisan conflict. The government has already conditionally approved Google’s request to export high-precision map data in an effort to avoid giving Washington grounds for additional tariffs.

Failure to pass the investment bill in the coming days could carry further costs. Both sides should exercise strategic flexibility to safeguard national interests amid mounting external risks.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260302010000303

China’s Commerce Ministry says the move against Japanese firms will prevent the remilitarisation of Japan.

Japan has strongly protested China’s move to restrict the export of “dual-use” items to 20 Japanese business entities that Beijing says could be used for military purposes, in the latest twist in a months-long diplomatic row between the two countries.

Japanese Deputy Chief Cabinet Secretary Sato Kei said at a news conference that the move by China’s Ministry of Commerce on Tuesday was “deplorable” and would “not be tolerated” by Tokyo.

Companies affected by China’s export ban on dual-use items, or items that can be used for civilian or military purposes, include Mitsubishi Heavy Industries’ shipbuilding group, aerospace and marine machinery subsidiaries, Kawasaki Heavy Industries, Japan’s National Defense Academy, and the Japan Aerospace Exploration Agency.

Beijing said restricting the export of dual-use items to the Japanese firms was necessary to “safeguard national security and interests and fulfil international obligations such as non-proliferation”, adding that the companies were involved in “enhancing Japan’s military strength”.

China’s Commerce Ministry said on Tuesday that it would also add another 20 entities to its export restrictions watchlist, including Japanese automaker Subaru, petroleum company ENEOS Corporation, and Mitsubishi Materials Corporation.

Chinese exporters must submit a risk assessment report for each company to ensure “dual-use items will not be used for any purpose that would enhance Japan’s military strength”, according to a statement on the Commerce Ministry’s website.

China has imposed similar restrictions on the US and Taiwan as a form of political protest, particularly over Washington’s ongoing unofficial support for the self-governed island. Beijing claims democratic Taiwan as its territory and has not ruled out using force for “reunification”.

Tokyo and Beijing have a historically acrimonious relationship, but diplomatic ties took a turn for the worse in November, when Japanese Prime Minister Sanae Takaichi told legislators that a Chinese attack on Taiwan would constitute a “survival-threatening situation” for Japan, which could necessitate military action.

Japan has had a pacifist constitution which restricts its use of force, but an attack on Taiwan could legally allow Tokyo to activate its army, the Self-Defence Forces, Takaichi said.

Takaichi’s remarks were some of the most explicit regarding whether Japan could become involved in a conflict in the Taiwan Strait, and have been accompanied by a push to expand Japan’s military capability.

Beijing reacted with fury to Takaichi’s remarks, discouraging Chinese citizens from visiting Japan, leading to a major drop in tourism revenue from Chinese visitors.

In January, Beijing also imposed Japanese export restrictions on rare earths like gallium, germanium, graphite and rare earth magnets that could be used for defence purposes, according to the US-based Centre for Strategic and International Studies (CSIS) think tank.

The CSIS said at the time that “these retaliatory measures underscore rising tensions between Beijing and Tokyo and serve as a pointed warning from China to countries that take explicit positions on cross-strait relations”.

Tokyo does not have official diplomatic relations with Taiwan, but several of its outlying islands, including Okinawa, are geographically closer to Taiwan than mainland Japan. Taiwan is also enormously popular with the Japanese public.

Feb. 23 (UPI) — Nearly $273 million in annual Ecuadorian exports are at stake if a reciprocal 30% tariff announced by Ecuador and Colombia takes effect, according to the Ecuadorian Federation of Exporters, Fedexpor.

The trade group said 580 Ecuadorian companies export to Colombia and warned that for several of them, the impact of new tariffs could be devastating, as up to half of their revenue depends on that market.

Although the tariff has not been implemented, Fedexpor said uncertainty is already affecting business decisions. Colombian buyers are reluctant to close deals amid the possibility that the measure could made formal in the short term, local newspaper Primicias reported.

The government of President Daniel Noboa announced Jan. 21 that Ecuador would impose a 30% tariff, described as a “security fee,” on imports from Colombia. Quito said the move responds to what it considers a lack of commitment by the government of President Gustavo Petro to border security.

Colombia responded the following day by announcing a reciprocal 30% tariff on 20 products imported from Ecuador. It also decided to cut off electricity supplies to Ecuador.

The 30% tariffs were scheduled to take effect Feb. 1, but were not implemented.

Xavier Rosero, president of Fedexpor, said there remains a “window of time” for both governments to reach an agreement on security and trade matters.

Industrial products such as fats, vegetable oils, canned tuna, plastics and rubber face high uncertainty. Orders for these goods, which are key in bilateral trade, are currently on hold, Rosero told digital outlet El Oriente.

He added that Colombian buyers are already seeking alternative suppliers in China, Brazil and Mexico to replace Ecuadorian products, a shift that could result in market losses that are difficult to recover.

Ecuadorian palm oil is among the most affected products, valued at roughly $96 million annually.

The palm oil sector generates 110,000 jobs across 14 provinces, mainly in border areas. It exports between 6,000 and 8,000 metric tons per month to the Colombian market — volumes that could be redirected to other destinations, though that would not be easy, according to Ecuavisa.

Fedexpor estimates about 40,000 jobs are tied to Ecuadorian companies with significant sales to Colombia. Once the tariff is applied, it could affect more than 50 Ecuadorian products.

Rosero acknowledged as “legitimate” the Noboa government’s concern over security conditions along the shared border with Colombia, describing it as “a key space for trade, but also one that has been vulnerable to illicit activities.”

The dispute is now under review by the Andean Community’s courts after complaints filed by Colombia and counterclaims from Ecuador, in a process that could prolong commercial uncertainty.

Feb. 20 (Asia Today) — Japan’s ruling Liberal Democratic Party has approved a draft proposal calling for a significant expansion of lethal weapons exports, including scrapping existing limits that restrict overseas transfers to non-combat equipment.

The draft, endorsed Wednesday by the party’s Security Affairs Committee, seeks to revise operational guidelines under Japan’s Three Principles on Defense Equipment Transfer.

At the center of the proposal is the abolition of the so-called “five categories” rule, which currently limits arms exports to non-combat purposes such as rescue, transport, surveillance and mine clearance.

Under the draft, exports of weapons with lethal capability would in principle be permitted.

Kojiro Onodera, head of the committee, told reporters after the meeting that Japan’s security environment is “growing increasingly severe” and said expanding defense exports is necessary to strengthen coordination with allies and like-minded countries.

The party plans to finalize its recommendations next week and submit them to the government in early March.

Exports would be limited to countries that have signed defense equipment and technology transfer agreements with Japan. Media reports have cited between 10 and 17 partner countries, including the United States and Australia.

Decisions on lethal weapons exports would be subject to review by the prime minister and relevant Cabinet ministers at the National Security Council. Non-lethal items such as body armor and helmets would be handled at the working level within the government, with possible post-reporting to the Diet rather than requiring formal Cabinet approval in each case.

The draft also calls for allowing finished products developed through international joint programs to be exported to third countries beyond the original partner nations. Current rules restrict such transfers largely to the next-generation fighter program jointly pursued by Japan, Britain and Italy.

Another sensitive issue is exports to countries involved in armed conflict. The existing principles prohibit transfers to parties engaged in conflict, allowing only limited non-lethal support to countries such as Ukraine.

The draft would maintain a general ban on exports to countries actively engaged in combat but allow exceptions in “special circumstances” when Japan’s security interests are at stake.

Japanese media outlets including Asahi, Mainichi and Sankei described the move as accelerating Japan’s shift toward a more active defense export policy.

The push reflects efforts to revitalize Japan’s defense industry and deepen security ties with partner nations. Critics, however, have raised concerns that easing restrictions could weaken parliamentary oversight and increase the risk of arms proliferation.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260220010005980

Published on 20/02/2026 – 12:34 GMT+1•Updated
12:35

European steel shipments to the US declined 30% between June and December 2025 compared with the same period a year earlier, according to recent Eurostat data compiled by Eurofer, the Brussels-based industry group.

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The decline underscores the impact of the US’s 50% tariffs on EU steel, even after the EU and US signed a trade agreement in July 2025 agreeing a blanket 15% US tariff on EU goods. Steel was carved out of that deal and talks to ease duties remain stuck.

“A 30% drop in steel exports to the US within just six months is a clear signal that the blunt 50% tariffs imposed by the US government on EU steel are damaging our industry,” Eurofer Director general Axel Eggert said.

“The US decision to include EU downstream steel products, such as machinery, will have another huge negative impact on us and our European customers,” he added.

Washington imposed 50% tariffs on EU steel and aluminium in June 2025 and extended the measures to more than 400 steel and aluminium products in August.

Steel talks tied to EU-US trade deal enforcement

The US has framed the tariffs as a shield against Chinese overcapacity flooding global markets, including Europe.

With Chinese exports increasingly redirected from the US to the EU, the European Commission proposed on 7 October 2025 to halve the volume of steel allowed into the bloc duty-free and to levy a 50% tariff on imports exceeding a quota of 18.3 million tons a year.

The proposal steel needs to be adopted by the EU legislator. Meanwhile Brussels itself hopes to reopen talks with the White House to secure lower duties on EU steel.

But US negotiators have linked any resumption of discussions to the implementation of last summer’s EU-US trade deal, struck by Commission President Ursula von der Leyen and President Donald Trump. Under that pact, the EU agreed to cut its tariffs on US goods to zero while accepting 15% duties on its exports to the US.

With the EU legislative process still requiring approval from lawmakers and member states, Washington’s patience is wearing thin. Tensions could rise further after EU lawmakers introduced amendments that may complicate talks with capitals.

The European Parliament is expected to vote on the deal in March, paving the way for negotiations with member states.

The talks stalled on the European side after the US threatened to annex Greenland militarily from Denmark in January. Although the US has softened its language, it led to delays. The administration’s continuous lobbying for less stringent rules when it comes to digital legislation in Europe has also added obstacles to the talks.