Trump Tariffs Loom Large in South Korea’s ‘Steel City’

This picture taken on February 13, 2025 shows steelworks of South Korea's largest steelmaker POSCO in Pohang. (AFP)
This picture taken on February 13, 2025 shows steelworks of South Korea's largest steelmaker POSCO in Pohang. (AFP)
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Trump Tariffs Loom Large in South Korea’s ‘Steel City’

This picture taken on February 13, 2025 shows steelworks of South Korea's largest steelmaker POSCO in Pohang. (AFP)
This picture taken on February 13, 2025 shows steelworks of South Korea's largest steelmaker POSCO in Pohang. (AFP)

Smoke billows from chimneys as factories churn in South Korea's steelmaking heartland, now under threat from Washington's swingeing new tariffs on the port city's largest export.

The city of Pohang on South Korea's east coast for decades pumped out the steel that fueled the country's breakneck economic rise.

South Korea was the fourth largest exporter of the metal to the United States last year, accounting for 13 percent of its total steel imports.

But the industry has faced intense strain in recent years from foreign competition.

And businesses, officials and workers in the city now fear a planned 25 percent tariff on all steel imports to the United States beginning next month could have devastating impacts -- and major knock-on effects on South Korea's economy.

"The steel industry is a vital national industry that serves as a fundamental material for key sectors such as construction, automotive and shipbuilding," Pohang's mayor Lee Kang-deok told AFP.

"If the steel industry collapses, the entire South Korean economy will be destabilized," Lee warned.

"If we fail to respond effectively to President Trump's tariff measures, our country's economy could face an even greater shock, leading to an irreversible situation."

- 'Steel city' -

Lying around 270 kilometers (168 miles) southeast of Seoul, Pohang has carved out a rare place as a key industrial hub in a country beset by deepening regional inequality -- and where most resources are tightly concentrated in the capital.

It is home to the nation's top steelmaker, POSCO, a major force in South Korea's industrialization and development as an export powerhouse, alongside giants like Hyundai Steel and Dongkuk Steel.

"Pohang has long been a symbolic steel city that has supported South Korea for decades, serving as a backbone for the country's development," said Bang Sung-jun, a former Hyundai Steel worker and an official at the Korean Metal Workers' Union's Pohang branch.

"The steel industry has provided quality jobs and sustained the local economy," he told AFP, while acknowledging the pollution produced and the often dangerous conditions for workers in the industry.

How those workers respond to the current crisis, he added, "will determine whether the city of Pohang can sustain its steel industry, putting its very survival at stake".

- 'Significant' impact -

South Korea's steel industry has faced intense pressure in recent years as it grapples with oversupply -- particularly from China -- and a decrease in global demand.

The US tariffs are likely to intensify those challenges, and analysts warn that should cheap Chinese steel barred from the US market begin to flood regions like Southeast Asia and Europe, South Korean steel producers will face deepening price competition.

"Trump's protectionism certainly will affect South Korea's long-suffering steel industry, already squeezed by low-price exports from China and unfavorable Japanese yen exchange rate," Vladimir Tikhonov, professor of Korea studies at the University of Oslo, told AFP.

"The impact will be significant," he said.

Some suggest the tariffs could offer opportunities for South Korean firms to find new export markets.

But for workers in Pohang, where several mills have already shut down, job security and the threat of further layoffs overshadow any potential benefits.

AFP reporters visited a factory owned by Hyundai Steel which closed late last year. It did not appear to be operating and was guarded by a handful of staff at the time of the visit.

Journalists saw signs hung by unionized workers criticizing the management and demanding an apology, and through an open door, what looked like debris piled up inside.

"For us workers, it has always been a crisis without any opportunities," said Bang, the unionist.

Worker Lee Woo-man, who has worked as a subcontractor for POSCO for two decades, told AFP that 20 of his colleagues have lost their jobs in the past year.

He expected employment in the city to "decrease even more" over the next four years and believes Trump's tariffs will speed up the decline of the city, which he said has lost the vibrancy it had when he was young.

Lee said he grew up watching the smoke rise from the chimneys of massive mills, thinking to himself: "POSCO is feeding Pohang".

But now that view makes him worry.

"I don't know when this will all fall apart."



French Economy Likely to Grow at Least 0.8% in 2025, Finance Minister Says

French Minister for Economy, Finance, and Industrial, Energy and Digital Sovereignty Roland Lescure attends the 7th formal meeting of the Franco-Chinese Business Council in Beijing on December 4, 2025. (Reuters)
French Minister for Economy, Finance, and Industrial, Energy and Digital Sovereignty Roland Lescure attends the 7th formal meeting of the Franco-Chinese Business Council in Beijing on December 4, 2025. (Reuters)
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French Economy Likely to Grow at Least 0.8% in 2025, Finance Minister Says

French Minister for Economy, Finance, and Industrial, Energy and Digital Sovereignty Roland Lescure attends the 7th formal meeting of the Franco-Chinese Business Council in Beijing on December 4, 2025. (Reuters)
French Minister for Economy, Finance, and Industrial, Energy and Digital Sovereignty Roland Lescure attends the 7th formal meeting of the Franco-Chinese Business Council in Beijing on December 4, 2025. (Reuters)

Unless there is a sharp reversal in the final three months of the year, the French economy is likely to grow by at least 0.8% in 2025, outpacing the 0.7% that the government had anticipated, Finance Minister Roland Lescure said on Sunday.

"We will most likely exceed the government's growth forecast for this year. We had predicted 0.7%, but I think we will have at least 0.8%. That's good news," Lescure told LCI television.

"So we would really need to have a bad fourth quarter, which I don't believe will happen, for us to be below 0.8%, so 0.8% is within reach," he added.

France's economy grew 0.5% in the third quarter, final data from statistics office INSEE showed in November, reflecting resilience in the euro zone's second-largest economy.


Saudi Real Estate Shifts from Temporary Upswing to Operational Maturity

Real estate projects in Riyadh (SPA) 
Real estate projects in Riyadh (SPA) 
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Saudi Real Estate Shifts from Temporary Upswing to Operational Maturity

Real estate projects in Riyadh (SPA) 
Real estate projects in Riyadh (SPA) 

Saudi Arabia’s listed real estate sector recorded an exceptional and unprecedented transformation in the third quarter of 2025, with profits surging more than sixfold. Total earnings jumped 633.6 percent to $496 million (SAR 1.86 billion), compared with $67.5 million a year earlier, an indication that the industry has entered a phase of sustained operational maturity rather than a short-term cyclical rebound.

The sharp rise reflects the companies’ success in restructuring their product portfolios, enhancing cash flows, and shifting from “paper growth” to revenue-driven expansion supported by project deliveries and operational income.

Sector analysts attributed the leap in profitability to the rollout of major real estate projects in large cities, higher project quality, improved financing conditions, and stronger liquidity.

They noted that the leap aligns with the rapid expansion of Saudi Arabia’s non-oil economy, which now contributes about 56 percent of GDP. This has strengthened demand across residential, commercial, industrial, and office real estate, supporting profit growth alongside recent regulatory reforms.

During the first nine months of 2025, listed real estate firms achieved combined profits of $1.44 billion (SAR 5.4 billion), led by Cenomi Centers, Jabal Omar, and Masar (Umm Al-Qura for Development and Construction) - a 244 percent increase from the same period in 2024.

Financial disclosures show that nine out of sixteen listed developers reported higher profits in Q3, while four companies returned to profitability. Masar topped the sector in Q3 with SAR 516.6 million in earnings, up 341.9 percent year-on-year. Cenomi Centers ranked second with SAR 499.8 million, a rise of 52.2 percent, followed by Dar Al-Arkan, whose profits climbed 89 percent to SAR 255.6 million.

Real estate specialist Abdullah Al-Mousa told Asharq Al-Awsat that the historic profit surge confirms the sector has “entered a stage of operational maturity,” reflecting companies’ improved efficiency, stronger recurring revenues, and the successful transition to asset-operation models.

He identified three key drivers: higher-quality projects and stronger occupancy across income-generating assets; improved financing conditions amid stabilizing interest rates; and the completion of major projects, particularly in Riyadh and Makkah.

Al-Mousa expects continued positive performance in coming quarters, though at a more moderate pace, supported by new strategic projects entering operation, sustained housing demand, rising commercial activity in Riyadh, and ongoing regulatory reforms that reduce risk and attract institutional investment.

Real estate analyst Salman Saeed said the strength of the non-oil economy has sharply boosted demand in housing, retail, industrial, and office markets. He highlighted reforms such as the expansion of the white-land tax and rental-regulation measures, along with significant government support for homeownership, which has raised the share of Saudi citizens owning homes.

Saeed noted that rising demand for commercial and office space, driven by multinational companies relocating to Riyadh, has lifted occupancy rates and diversified developers’ income streams. Some firms also improved results through land sales and divestment of non-core assets, enhancing operational efficiency.

 

 


Qatar’s Energy Minister: AI Will Secure Future Demand for LNG

Al-Kaabi speaks at a panel discussion at the Doha Forum 2025. (X)
Al-Kaabi speaks at a panel discussion at the Doha Forum 2025. (X)
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Qatar’s Energy Minister: AI Will Secure Future Demand for LNG

Al-Kaabi speaks at a panel discussion at the Doha Forum 2025. (X)
Al-Kaabi speaks at a panel discussion at the Doha Forum 2025. (X)

Statements by Qatar’s Minister of State for Energy Affairs Saad Al-Kaabi became a focal point at the Doha Forum 2025, opened by Emir Sheikh Tamim bin Hamad Al Thani under the theme “Anchoring Justice: From Promises to Tangible Reality.”

Al-Kaabi delivered an upbeat assessment of the gas sector’s future, insisting he has “no concern whatsoever” about long-term demand thanks to the soaring power needs of artificial intelligence data centers.

Al-Kaabi said global demand for natural gas will remain robust as AI-driven energy consumption accelerates, forecasting that liquefied natural gas (LNG) demand will reach 600–700 million tons annually by 2035. He warned, however, that insufficient investment could constrain future LNG and gas supplies.

“I have absolutely no worries about future gas demand,” he said, adding that AI-related power consumption will be a key driver.

Once fully operational, Qatar’s North Field expansion is expected to produce 126 million metric tons of LNG a year by 2027 - an 85 percent increase from today’s 77 million tons.

He also noted that the first train of the Golden Pass LNG project, a joint venture with ExxonMobil in Texas, is scheduled to begin operations in the first quarter of 2026.

Al-Kaabi argued that oil prices between $70 and $80 per barrel would generate sufficient revenue for companies to invest in future energy needs, while prices above $90 would be “too high.”

He separately cautioned that the Gulf region is witnessing an “excess of real-estate construction,” raising the risk of a property bubble.

The minister hoped that the European Union will address corporate concerns over new sustainability regulations by the end of December.

Gulf Cooperation Council states voiced deep concern on Friday about two proposed EU directives, which tackle corporate sustainability due diligence and sustainability reporting, recently amended by the European Parliament for trilogue negotiations.

The GCC warned that the measures would effectively compel major European and international companies to adopt the EU’s sustainability model, comply with additional human rights and environmental obligations, submit climate-transition plans beyond existing global accords, file detailed sustainability reports, and face penalties for non-compliance.

Qatar has also criticized the due-diligence directive and has threatened to halt gas supplies. The dispute centers on potential fines of up to 5 percent of a company’s global revenue.

Al-Kaabi has repeatedly stated that Qatar will not meet net-zero emissions targets under such conditions.