South Korea will 'deploy all possible means' to respond to US tariffs

SEOUL, Mar 12 (Agencies): South Korea will "deploy all possible means" to respond to U.S. President Donald Trump's decision to impose tariffs on steel and aluminium imports, the country's finance minister said on Monday.

"We will make clear what our stance is," Kim Dong-yeon said during a policy meeting in Seoul.

"(The government) will deploy all possible means to respond to U.S. steel tariffs measures and make an all-out effort," Kim said, without elaborating.

The United States opened the way for more exemptions from its steel and aluminium tariffs on Friday, after pressure from allies and intense lobbying from lawmakers, further diluting the measures just a day after they were formally announced.

South Korea's government will also decide on whether to join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) within the first half of this year, Kim said in the meeting on Monday.

Eleven countries, including Japan and Canada, signed a landmark Asia-Pacific trade agreement without the United States on Thursday in what one minister called a powerful signal against protectionism and trade wars.

"The government has been reviewing economic validity of CPTPP, and will draw agreement between the related government agencies about joining it within the first half," Kim said.

Meanwhile, Shanghai aluminium prices recorded their lowest close in 14 months on Monday, three days before winter output curbs on Chinese smelters are set to end and amid fallout from looming U.S. tariffs on metal imports.

"Concerns over the impact of a trade war instigated by the U.S. tariffs on aluminium and steel continue to weigh on the sector," ANZ wrote in a note.

Aluminium smelters in 28 northern Chinese cities were told to reduce output by at least 30 per cent from Nov 15 to March 15, although the actual volume cut was below expectations, putting pressure on prices.

There may only be a limited restart from March 15 as current prices are not high enough for some smelters to break even, industry sources say, but any extra supply will hit the market at a time when Shanghai aluminium inventories are at a record high.