South Korea, which accounts for 13% of the US's steel exports, is concerned that the 25% tariff on all steel imports to the US, which will be implemented starting in March, could have a devastating and large-scale domino effect on the South Korean economy. Business leaders, officials, and workers are all worried about this impact.
Among the most affected cities is Pohang, on the east coast of South Korea. For decades, this city has been producing the steel that has fueled the country's economic rise. Pohang is known as the “Steel City” for its steel production, which played an important role in South Korea's development. The mayor of Pohang, Lee Kang-deok, emphasized the need for an appropriate response to US President Donald Trump's planned tariffs, saying that the steel industry is the heart of South Korea's economy and that the collapse of the steel industry would cause irreversible damage to the South Korean economy.
POSCO, the country's largest steelmaker, along with giants such as Hyundai Steel and Dongkuk Steel, plays a key role in South Korea's industrialization and development as a major export power.
Some argue that the tariffs could offer South Korean firms the opportunity to find new export markets. But for workers in Pohang, where many factories have already closed, job insecurity and the threat of further layoffs overshadow any potential benefits.
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