South Korea Reports Decline in Exports Due to U.S. Tariffs
(MENAFN) South Korea has reported a 1.3% decline in exports for May compared to the previous year, ending a three-month period of growth, amid concerns that the US’s so-called "reciprocal" tariff policies are impacting its trade, according to recent media reports.
Industry Minister Ahn Duk-geun told a Seoul-based news agency, “The US tariffs seem to be affecting the global economy and South Korea's exports, proven by a decrease in South Korea's exports to the two biggest markets -- the US and China.”
Government figures released Sunday revealed that South Korea’s outbound shipments totaled $57.3 billion last month, down from $58.02 billion in May 2018.
Meanwhile, imports fell 5.3% year-over-year to $50.3 billion, resulting in a trade surplus of $6.94 billion.
Exports to the United States dropped 8.1% to $10 billion, largely driven by a slump in automotive sales due to the Trump administration’s 25% tariffs.
Exports to China also declined 8.4% year-over-year to $10.4 billion, hurt by weakened demand for semiconductors and petrochemicals. Shipments to the Association of Southeast Asian Nations (ASEAN) decreased by 1.3% to $10 billion.
Conversely, exports to the European Union rose 4% to $6 billion, marking a third consecutive month of gains fueled by robust demand for automobiles and semiconductors.
“To minimize the damage to our export companies and maximize national interest, the government will clearly communicate our position on US tariff measures to the Trump administration and work toward mutually beneficial solutions,” Ahn emphasized.
In recent months, President Donald Trump has imposed sweeping tariffs on many of Washington’s trading partners, igniting a global trade war.
Although Trump announced a 90-day pause on his so-called "Liberation Day" tariff to provide temporary relief and open negotiations, he renewed threats at a Pennsylvania rally Friday, declaring plans to double tariffs on steel imports from 25% to 50%, which he said “will even further secure” the US steel industry.
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