South Korea Urges U.S. Tariff Relief for New $5.8 Billion Louisiana Steel Mill

South Korean Industry Minister Kim Jung-kwan has urged the United States to ease tariffs on equipment and materials needed for the construction of a new $5.8 billion steel mill in Louisiana. The request was made during a meeting with Louisiana Governor Jeff Landry prior to a groundbreaking ceremony for Hyundai-POSCO Louisiana Steel LLC (HPLS). The facility is a joint venture consisting of Hyundai Steel with a 50 percent stake, POSCO with 20 percent, and Hyundai Motor and Kia with 15 percent each.

The plant will be the first electric arc furnace based mill in the U.S. dedicated to automotive steel production. It is expected to produce 2.7 million tons of steel annually starting in 2029, supplying automakers in the southern U.S. and Mexico. According to Hyundai Steel, the use of electric arc furnaces will reduce carbon emissions by approximately 70 percent compared to traditional blast furnace production. The project is part of a larger $26 billion U.S. investment plan announced by Hyundai Motor Group last year.

Minister Kim highlighted that the project combines South Korean technology with U.S. energy and industrial infrastructure. He specifically requested relief from tariffs under Section 232 of the Trade Expansion Act of 1962, which allows the U.S. president to restrict imports deemed threats to national security. Louisiana Economic Development Secretary Susan B. Bourgeois and Governor Landry emphasized the project's economic impact, noting the creation of high value manufacturing jobs and the strengthening of the regional industrial base.

Outlets with a center lean focused heavily on the specific trade barriers and the diplomatic request for tariff relief. In contrast, outlets with a center right lean placed more emphasis on the strategic industrial partnership and the positive economic contributions to the U.S. manufacturing base.