South Korean Exports To US Slump On Auto Tariffs – Details

Seoul: South Korean exports to the USA had been down 8.1 consistent with cent for the month of May, as in comparison to the similar month final 12 months, weighed down through the USA President Donald Trump’s tariff, because it took a toll on automotive sector, the Korea Herald reported on Sunday, mentioning the federal government of Korea’s information.

Korea’s outbound shipments had been at USD 57.2 billion for the month of May, registering its first y-o-y decline for 2025. At the similar time, imports additionally declined 5.3 consistent with cent to USD 50.3 billion, resulting in a business surplus of USD 6.94 billion.

The automotive sector used to be one of the vital key sectors that suffered from the affect of the USA business tariff coverage. The sector registered a decile of 4.4 consistent with 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 mentioned.

Despite of decline in exports, semiconductors had been one of the vital nation’s main export pieces that skilled a upward thrust of 21.2 consistent with cent on-year to USD 13.8 billion, the highest-ever export cost for May.

This upward thrust used to be attributed to sturdy call for for high-value-added reminiscence merchandise corresponding to high-bandwidth reminiscence and DDR5 chips. 

Similarly, exports for smartphones rose through 3.9 consistent with cent on-year to USD 1.3 billion, whilst laptop exports higher 2.3 consistent with 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 additionally highlighted that the South Korean executive will transfer hastily to enforce the price range allotted during the supplementary spending plan, together with 150 billion received (USD 108.4 million) for tariff-related business insurance coverage for small- and mid-sized corporations, and 84.7 billion received for tariff reaction vouchers.