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."



Türkiye's Central Bank Lifts 2026 Inflation Forecasts

Türkiye's Central Bank headquarters is seen in Ankara, Türkiye in this January 24, 2014 file photo. REUTERS/Umit Bektas
Türkiye's Central Bank headquarters is seen in Ankara, Türkiye in this January 24, 2014 file photo. REUTERS/Umit Bektas
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Türkiye's Central Bank Lifts 2026 Inflation Forecasts

Türkiye's Central Bank headquarters is seen in Ankara, Türkiye in this January 24, 2014 file photo. REUTERS/Umit Bektas
Türkiye's Central Bank headquarters is seen in Ankara, Türkiye in this January 24, 2014 file photo. REUTERS/Umit Bektas

Türkiye's central bank on Thursday increased its estimates for inflation as officials try to rein in soaring price increases that have weighed on the economy for years.

The official inflation rate is now seen falling to between 15 and 21 percent by the end of this year, up from a previous forecast of 13 to 19 percent.

"We have increased our forecast range because of better visibility on certain risks," the central bank's governor Fatih Karahan said in a statement, without further detail, Reuters reported.

The forecast would still be a sharp decline from the annual inflation rate of 30.7 percent in January, following years of interest rate hikes in a bid to slow runaway price increases.

However, the official figures are disputed by ENAG, a group of independent economists that publishes its own data every month, with the organisation saying year-on-year inflation stood at 53.4 percent in January.

Türkiye has experienced double-digit inflation since 2019, making life increasingly more expensive for millions of people, after President Recep Tayyip Erdogan ordered interest rate cuts in a bid to spur growth.

The cuts sent the lira plunging on currency markets, further fuelling inflation and leading Erdogan to reverse his unorthodox policy in 2023.

But in January the central bank cut its benchmark interest rate to 37 percent, citing a continued slowing of price increases.

 

 

 

 


Mawani Reports 2.01% Increase in Container Throughput for January 2026

Mawani Reports 2.01% Increase in Container Throughput for January 2026
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Mawani Reports 2.01% Increase in Container Throughput for January 2026

Mawani Reports 2.01% Increase in Container Throughput for January 2026

Ports overseen by the Saudi Ports Authority (Mawani) reported a 2.01% increase in container handling for January 2026, totaling 738,111 TEUs, up from 723,571 TEUs in January 2025. Transshipment containers rose significantly by 22.44%, reaching 184,019 TEUs compared to 150,295 TEUs the previous year.

However, the number of imported containers decreased by 3.23% to 284,375 TEUs, and exported containers dropped by 3.47% to 269,717 TEUs year-over-year, SPA reported.

Passenger numbers surged by 42.27%, totaling 143,566 passengers compared to 100,909 last year. Vehicle volumes increased by 3.31% to 109,097, and the ports received 886,908 heads of livestock, a 49.86% increase from the same period in 2025.

In terms of cargo tonnage, liquid bulk cargo rose by 0.28% to 14,102,495 tons, general cargo totaled 839,987 tons, and solid bulk cargo reached 4,263,168 tons. The total tonnage handled was 19,205,650 tons, reflecting a 3.04% decrease from the previous year. Vessel traffic recorded 1,121 ships, a slight decrease of 1.75%.

This increase in container throughput supports trade, stimulates the maritime transport industry, and enhances supply chains and food security. These achievements align with the National Transport and Logistics Strategy, reinforcing Saudi Arabia's position as a global logistics hub.

In 2025, Mawani ports achieved a 10.58% increase in total handled containers, reaching 8,317,235 TEUs, while transshipment containers for the year rose by 11.78% to 1,927,348 TEUs.


Oil Prices Edge Lower as IEA Reduces Demand Forecast

Oil platforms and pumpjacks at Lake Maracaibo, in Cabimas, Venezuela, January 26, 2026. REUTERS/Leonardo Fernandez Viloria/File Photo
Oil platforms and pumpjacks at Lake Maracaibo, in Cabimas, Venezuela, January 26, 2026. REUTERS/Leonardo Fernandez Viloria/File Photo
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Oil Prices Edge Lower as IEA Reduces Demand Forecast

Oil platforms and pumpjacks at Lake Maracaibo, in Cabimas, Venezuela, January 26, 2026. REUTERS/Leonardo Fernandez Viloria/File Photo
Oil platforms and pumpjacks at Lake Maracaibo, in Cabimas, Venezuela, January 26, 2026. REUTERS/Leonardo Fernandez Viloria/File Photo

Oil prices slipped on Thursday as investors weighed the International Energy Agency's lowering of its global oil demand forecast for 2026 against potential escalation of US-Iran tensions.

Brent crude oil futures were down 19 cents, or 0.27%, at $69.21 a barrel by 1232 GMT. US West Texas Intermediate crude fell 8 cents, or 0.12%, to $64.55.

Global oil demand will rise more slowly than previously expected this year, the IEA said on Thursday while projecting a sizeable surplus despite outages that cut supply in January.

The Brent and WTI benchmarks reversed gains to turn negative after the IEA's monthly report, having derived support earlier from concerns over the US-Iran backdrop.

US President Donald Trump said after talks with Israeli Prime Minister Benjamin Netanyahu on Wednesday that they had yet to reach a definitive agreement on how to move forward with Iran but that negotiations with Tehran would continue.

Trump had said on Tuesday that he was considering sending a second aircraft carrier to the Middle East if a deal is not reached with Iran. The date and venue of the next round of talks have yet to be announced.

A hefty build in US crude inventories had capped the early price gains. US crude inventories rose by 8.5 million barrels to 428.8 million barrels last week, the Energy Information Administration said, far exceeding the 793,000 increase expected by analysts in a Reuters poll.

US refinery utilization rates dropped by 1.1 percentage points in the week to 89.4%, EIA data showed.

On the supply side, Russia's seaborne oil products exports in January rose by 0.7% from December to 9.12 million metric tons on high fuel output and a seasonal drop in domestic demand, data from industry sources and Reuters calculations showed.