Key points from the situation in Pohang, South Korea:

• Pohang, a key steelmaking city, faces devastating impacts from planned 25% US tariffs on steel.
• South Korea was the fourth-largest steel exporter to the US, making up 13% of its imports.
• The steel industry's collapse could destabilize the entire South Korean economy, according to local officials.
• Workers fear for job security as many mills have already closed, putting the city's economic future at risk.

Smoke billowed from chimneys as factories churned in South Korea’s steelmaking heartland of Pohang, a city now threatened by the drastic tariffs set by Washington on its largest export. Known for its pivotal role in the nation's rapid economic growth, Pohang has long been a leader in steel production and is home to the nation’s top steelmaker, POSCO. Last year, South Korea was the fourth-largest exporter of steel to the United States, accounting for 13 percent of total imports.

However, the looming 25% tariff on all steel imports, scheduled to take effect next month, raises serious concerns among local businesses, officials, and workers. Lee Kang-deok, the mayor of Pohang, articulated the dire implications, stating, "If the steel industry collapses, the entire South Korean economy will be destabilised." He cautioned that failing to respond effectively to these tariffs could lead to an even greater economic shock with long-term repercussions.

Pohang's location, approximately 270 kilometers southeast of Seoul, positions it as a crucial industrial hub amid a region facing increasing inequality where resources are heavily concentrated in the capital. The city has benefited from a booming industrial sector, yet it now stands on a precipice as the steel industry, once a cornerstone of South Korea's industrialization, grapples with fierce foreign competition and waning global demand. Experts suggest that should the Chinese steel market — currently barred from US access — flood Southeast Asia and Europe, South Korean producers could face even steeper price competition.

Former Hyundai Steel employee Bang Sung-jun lamented the precarious situation, emphasizing that “the steel industry has provided quality jobs and sustained the local economy.” He noted that how workers respond amid current turmoil will be crucial for the industry's future. Amid the clamor of economic uncertainty, labor conditions have also come under scrutiny; trade unions have voiced concerns over management's handling of recent closures, with many workers feeling the crisis offers no paths to opportunity.

The dire outlook extends to the workers in Pohang. Lee Woo-man, a subcontractor for POSCO, reported that 20 of his colleagues lost their jobs in the past year alone. He anticipates further declines in employment opportunities in the coming years, linking this downturn directly to the pressure of Trump's tariffs. "I don’t know when this will all fall apart," he expressed, poignantly recalling a time when the city's mills symbolized prosperity and vitality.

As the city braces for the impact of these tariffs, the long-term implications for Pohang and South Korea's steel industry remain uncertain. The fear among workers and families hints at a looming crisis that could unravel decades of hard-earned economic progress. For further information, see the original articles from India Times, Channel News Asia, and South China Morning Post.