The Korean steel industry could find new business opportunities by participating in the Alaska gas pipeline project, despite the looming 25 percent U.S. tariff on all steel imports, according to The Korean Times. This potential involvement comes just as the U.S. is set to impose the new tariffs on Wednesday (U.S. time), a move that may initially challenge Korean steelmakers but could ultimately open new avenues for growth due to their advanced technology and production capabilities.

Korea has been considering participation in the Trump administration’s Alaska liquefied natural gas (LNG) project, which involves constructing a nearly 1,300-kilometer pipeline from Alaska’s North Slope to its southern port in Nikiski. This proposal was also put forward in Korea’s recent tariff negotiations with Washington. Experts note that Korean companies are highly competitive in manufacturing essential steel products for oil and gas drilling and transportation, such as pipes and valves.

Korean steel manufacturers have already established a strong presence in the U.S. market. Last year, Korea exported casings and steel pipes for drilling worth $400 million to the U.S., making it the country’s largest supplier of these products, according to data from the Korea International Trade Association (KITA). Additionally, in 2024, Seoul remained the top exporter of steel tubes to the U.S., with shipments reaching $288 million.

Major Korean steelmakers, including POSCO Holdings and Hyundai Steel, possess the expertise to develop and supply specialized steel products for LNG plants, The Korean Times reports. POSCO was the world’s first company to develop high-manganese steel capable of withstanding temperatures as low as minus 163 degrees Celsius, making it ideal for LNG storage in extreme conditions like those in Alaska. Hyundai Steel, on the other hand, produces thin plates for LNG tankers and steel materials for LNG storage tanks, further positioning Korea as a key player in the global LNG infrastructure market.

The introduction of the new U.S. steel tariffs is also expected to lift the country’s annual quota on Korean steel shipments. This could allow Korean steelmakers to compete on equal footing with major exporters such as Canada, Mexico, and China, potentially leading to an increase in U.S.-bound steel exports.

Trump had previously imposed a 25 percent tariff on all steel imports in 2018, citing national security concerns. However, at that time, the U.S. granted Korea an exemption in exchange for an annual import quota of 2.63 million tons, which represented approximately 70 percent of Korea’s average export volume between 2015 and 2017. With the quota system expected to change, Korean steelmakers may have new opportunities to expand their footprint in the U.S. market while supporting key infrastructure projects like the Alaska gas pipeline.