South Korean US exports slump on auto tariffs
South Korean exports to the US were down 8.1 per cent for the month of May compared to the same month last year, weighed down by US President Donald Trump's tariff, which took a toll on the automobile sector, the Korea Herald reported on Sunday, citing the government of Korea's data.
ANI
Jun 02, 2025 10:41 IST
New Delhi [India], June 2 (ANI): South Korean exports to US were down 8.1 per cent for the month of May, as compared to same month last year, weighed down by the US President Donald Trump's tariff, as it took a toll on automobile sector, the Korea Herald reported on Sunday citing government of Korea's data.
Korea's outbound shipments were at USD 57.2 billion for the month of May, registering its first y-o-y decline for 2025. At the same time, imports also declined 5.3 per cent to USD 50.3 billion, leading to a trade surplus of USD 6.94 billion.
The automobile sector was one of the key sectors that suffered from the impact of the US trade tariff policy. The sector registered a decile of 4.4 per cent to USD 6.2 billion, and "Hyundai Motor Group's operation of its local manufacturing plant in Georgia -- a strategic move to minimise the impact of the tariffs -- was also cited as a factor."
"As outbound shipments to our two largest markets, the US and China, have declined, the US tariff policies appear to be impacting the global economy and our exports," Industry Minister Ahn Duk-geun said.
Despite of decline in exports, semiconductors were one of the country's major export items that experienced a rise of 21.2 per cent on-year to USD 13.8 billion, the highest-ever export value for May.
This rise was attributed to strong demand for high-value-added memory products such as high-bandwidth memory and DDR5 chips. Similarly, exports for smartphones rose by 3.9 per cent on-year to USD 1.3 billion, while computer exports increased 2.3 per cent to USD 1.1 billion.
"We will come up with mutually beneficial solutions to address the US tariff measures, aiming to minimise damage for Korea's exporters and maximise national interest," Ahn added.
However, the minister also highlighted that the South Korean government will move swiftly to implement the budget allocated through the supplementary spending plan, including 150 billion won (USD 108.4 million) for tariff-related trade insurance for small- and mid-sized firms, and 84.7 billion won for tariff response vouchers. (ANI)
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