25% Steel Tariffs from Trump Begin... Steel City Pohang Prepares Countermeasures

All-out Efforts to Minimize Damage and Strengthen Competitiveness of the Local Steel Industry
Urging Government-wide Response through Designation as a Preemptive Industrial Crisis Response Area and Enactment of a Special Act on Steel Industry Support

Pohang City is making efforts to implement follow-up measures to minimize damage to the local steel industry and strengthen its competitiveness after the Trump administration in the United States began imposing tariffs on steel and aluminum on the 12th.

On the 5th, an on-site meeting to overcome the crisis in the steel industry was held at Pohang Steelworks. Provided by Pohang City

The local steel industry is suffering severe blows due to the Trump administration's 25% tariff and the increase in low-priced steel imports from China. In addition, the domestic and global economic downturn and decreasing steel demand have caused a sharp decline in factory operating rates, further increasing the economic burden on local companies.

The steel industry is a crucial foundation of the national economy, and its downturn can seriously impact related sectors such as construction, automotive, shipbuilding, and electrical and electronics. Pohang City is therefore striving to minimize the negative effects these difficulties have on the local economy.

Pohang City agrees that swift and effective government-wide measures are urgently needed to avoid missing the golden time for the recovery of the steel industry, which is the backbone of the national economy, and is strongly urging the National Assembly and the government to prepare such measures.

Accordingly, the city is actively requesting the government to designate Pohang as a Preemptive Industrial Crisis Response Area and to strengthen support measures.

This is a measure to prevent a chain crisis in local industries, including the steel industry, at an early stage. The city plans to continue joint responses with other steel cities and to ensure a rapid response to crises through the designation as a Preemptive Industrial Crisis Response Area.

If designated as a Preemptive Industrial Crisis Response Area, local businesses are expected to receive various policy supports, including not only financial loans but also operating funds, facility modernization, technology development support, and expansion of domestic and overseas sales channels.

In addition, the city is appealing for bipartisan support in enacting a "Special Act on Steel Industry Support" that would provide comprehensive government-level support.

The city plans to use the enactment of this special law to provide essential legal support for maintaining the global competitiveness of the steel industry and responding to carbon neutrality, thereby promoting the sustainable development of the steel industry.

Through these efforts, the city plans to prepare active support measures, including government subsidies and financial support, electricity rate reductions, support for investment in carbon reduction facilities, and research and development support for small and medium-sized enterprises and mid-sized companies.

This year, Pohang City is expanding the secondary guarantee amount for small and medium-sized enterprises to 150 billion KRW and providing preferential support to the steel industry sector to help overcome the industry's difficulties.

Furthermore, the city is actively pursuing policies such as implementing an industrial complex renovation project worth 186.8 billion KRW across nine projects to improve outdated steel industrial complex facilities and build new infrastructure.

Mayor Lee Kangdeok stated, "Efforts to protect local industries are not only about overcoming short-term crises, but also an important process for securing long-term growth engines for the sustainability of the steel industry. We hope for active, government-wide countermeasures through the designation as a Preemptive Industrial Crisis Response Area and the enactment of a special support law for the steel industry, with cooperation between the government and both ruling and opposition parties. Pohang City will do its utmost in this regard."

This content was produced with the assistance of AI translation services.