The Future of US Tariffs Hangs Over South Korea's Steel City

The Future of US Tariffs Hangs Over South Korea's Steel City

As the industrial heartland of Pohang, South Korea faces an uncertain future amidst Washington's new tariffs on steel imports. The 25% tariff, set to take effect next month, threatens to devastate the industry and have significant knock-on effects on South Korea's economy.

Pohang A Vital National Industry

For decades, Pohang has been a key industrial hub in South Korea, with Posco, Hyundai Steel, and Dongkuk Steel serving as major forces in the country's industrialization and development. The steel industry provides quality jobs and sustains the local economy, making it a vital national industry.

The Crisis Intensifies

South Korea's steel industry has faced intense pressure in recent years due to oversupply from China and decreasing global demand. The US tariffs are likely to exacerbate these challenges, with cheap Chinese steel potentially flooding regions like Southeast Asia and Europe, further squeezing South Korean steel producers.

Significant Implications Expected

Professor Vladimir Tikhonov of the University of Oslo warns that President Trump's protectionism will have significant implications for South Korea's long-suffering steel industry. The tariffs could lead to deepening price competition and job losses in Pohang, where several mills have already shut down.

Workers Face Uncertainty

For workers in Pohang, the threat of further layoffs overshadows any potential benefits from the tariffs. As Lee Woo-man, a steelworker, notes, 20 colleagues have lost their jobs in the past year, and he expects employment to decline even more over the next four years.

A Crisis Without Opportunities

Former Hyundai Steel worker Bang Sung-jun, an official at the Korean Metal Workers' Union's Pohang branch, says that for workers, it has always been a crisis without opportunities. The US tariffs will accelerate the decline of the city, which has lost its vibrancy over the years.

The Future of Pohang Uncertain

As Lee Woo-man remarks, I don't know when this will all fall apart. For the workers and businesses in Pohang, the future is uncertain, and the fate of the steel industry hangs precariously in the balance.

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