U.S. President Donald Trump reacts as he meets with Irish Taoiseach (Prime Minister) Micheal Martin (not pictured), in the Oval Office at the White House in Washington, D.C., March 12. Reuters-Yonhap

The Trump administration's imposition of tariffs on steel and aluminum imports widened its trade war across the globe on Wednesday, affecting Korea and other U.S. trading partners and sending policymakers striving harder to minimize the duties' ramifications on their industries.

Sweeping 25 percent tariffs on steel and aluminum imports from all countries went into effect on the day as President Donald Trump pushed for increased levies on the metals to boost domestic manufacturing in light of national security.

In 2018, the first Trump administration imposed a 25 percent tariff on steel imports and 10 percent on aluminum imports. This week's measure removed exceptions, exemptions and duty-free quotas for Korea and other countries, while raising the aluminum tariff to 25 percent.

The metal tariffs marked the second Trump administration's first trade action affecting all countries. It previously imposed additional tariffs on China, while temporarily delaying tariffs on Canadian and Mexican goods, which comply with an existing free trade deal, until early next month.

"President Trump is waging a global battle to reshape the trading system, aiming to reduce trade deficits and revitalize domestic manufacturing," Patrick Cronin, chair for Asia-Pacific security at the Washington-based Hudson Institute, told Yonhap News Agency via email.

"These tariffs send a strong if disruptive message: the United States is determined to reverse its industrial decline and reclaim some of its former strength — when it once produced nearly half of the world's steel and 70 percent of its aluminum," he added.

The scholar also pointed out that securing reliable imports of these critical materials remains essential, which he said underscores the importance of deepening cooperation with key allies like Korea.

The first Trump administration waived tariffs on Korean steel products in exchange for a yearly import quota of 2.63 million tons, which accounted for around 70 percent of Korea's average export volume between 2015 and 2017.

But this week's tariff measure abolished that quota arrangement. The U.S., moreover, imposed a 25 percent import tariff on 259 steel and aluminum derivative products.

Korea was the fourth-largest steel exporter to the U.S. last year, accounting for 9 percent of U.S. steel imports, according to the U.S. International Trade Administration (ITA). It was also the third-biggest aluminum exporter to the U.S., comprising 4 percent of U.S. aluminum imports.

A worker cuts a metal plate inside an industrial tank manufacturing factory on the outskirts of Ahmedabad, India, Jan. 31. Reuters-Yonhap

Observers said that this week's tariffs do not necessarily put Korea at a disadvantage given that they apply to all countries. Some struck an optimistic tone, saying the removal of the import quota for Korea could help create an opening for Asia's fourth largest economy to expand its foothold in the U.S. market.

But U.S. steel products, whose price competitiveness would strengthen due to tariffs, could absorb part of demand for Korean steel products, analysts noted.

The steel and aluminum tariffs have kicked in despite Seoul's beefed-up diplomacy to secure tariff exemptions or at least ensure that Korea is not put at a disadvantage compared with other U.S. trading partners.

The imposition also came against the backdrop of growing concerns that a continuing period of political uncertainty in Seoul, caused by President Yoon Suk Yeol's impeachment over his martial law attempt in December, would get in the way of high-level diplomacy with Washington over tariffs and other trade issues.

To better cope with the tariffs, the Korean government, industry leaders, scholars and other relevant figures participated in a public-private meeting on Wednesday.

At the meeting, Industry Minister Ahn Duk-geun vowed greater efforts to minimize the fallout from U.S. tariffs, as Seoul has been seeking to address tariff issues through working-level consultations and other communication channels with the U.S. government.

For Korean policymakers, the unpalatable truth is that the metal tariffs are only the start of what will come.

The Trump administration plans to roll out "reciprocal tariffs" on April 2 -- new levies on U.S. imports to match what other countries slap on American goods in pursuit of "reciprocity."

It has said it will customize country-by-country reciprocal tariffs based on trading partners' duties, non-tariff barriers and other elements, such as exchange rate policies.

Recent statements by Trump and his aides have deepened fears that Korea could be in his administration's crosshairs given that the Asian country's trade surplus with the U.S. reached US$55.7 billion last year.

Industry Minister Ahn Duk-geun speaks during a public-private meeting on U.S. tariff issues in Seoul, March 12. Yonhap

"Korea's average tariff is four times higher. Think of that ... four times higher, and we give so much help militarily and so many other ways to Korea. But that's what happens," Trump said during an address to Congress last week. "This is happening by friend and foe."

Seoul has countered Trump's claim by saying that Korea's average tariff rate on U.S. products stands at less than 1 percent under a bilateral free trade agreement.

Korea's average tariff on its most-favored nations (MFNs) stands at around 13.4 percent -- compared with the U.S.' 3.3 percent on its MFNs — but that rate is not applicable to countries with free trade deals with Asia's fourth-largest economy.

Aside from reciprocal tariffs, Korea is likely to be affected by Trump's proposed or planned tariffs on other items, ranging from cars and pharmaceuticals to semiconductors and lumber derivatives.

In an interview with the Wall Street Journal (WSJ) published Wednesday, Korea's acting President Choi Sang-mok underscored Seoul and Washington can strive to reach a "more balanced and mutually beneficial" relationship on trade and economics, which he said would ultimately upgrade the bilateral alliance.

"The Korean government, together with the private sector, is fully prepared for this," he was quoted as saying in the WSJ interview.

Choi stressed that the trade surplus with the U.S. "is temporary" while noting that Seoul would offer Korean expertise in shipbuilding to help the U.S. revive its naval shipbuilding industry, according to the WSJ.

Despite countries' diplomatic outreach to the U.S., Trump has shown no signs of lessening his tariff pressure, reiterating that the U.S. has been being ripped off by other countries, and that it will no longer be "taken advantage of."

"It's going to be very costly for people to take advantage of this country. They can't come in and steal our money and steal our jobs, and take our factories and take our businesses, and expect not to be punished," he said during a press availability earlier this month.

"They are being punished by tariffs. It's a very powerful weapon that politicians haven't used because they were either dishonest, stupid or paid off in some other form, and now we are using them."

After the metal tariffs took effect, countries across the globe warned of countermeasures or expressed concerns.

The European Union announced countermeasures, saying it will start imposing tariffs on U.S. goods worth 26 billion euros ($28 billion) on April 1, according to reports.

China vowed to take all necessary steps to safeguard its interests, while Japan's Chief Cabinet Secretary Yoshimasa Hayashi expressed regret over the U.S. tariffs, reports said. (Yonhap)