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Trump tariff shock becomes reality as exports to the U.S. drop 8%

Published: 01 Jun. 2025, 14:05 Updated: 01 Jun. 2025, 17:24

Export cargo is stacked at the Pyengtaek Port in Gyeonggi on June 1. [YONHAP]

Korea’s exports fell by 1.3 percent in May compared to the same month last year, marking the first year-over-year decline in four months since the United States' tariffs kicked in.

Semiconductor exports hit a record high for the month of May, but shipments to the United States dropped more than 8 percent, largely due to new U.S. tariffs on export items such as automobiles.

According to the Ministry of Trade, Industry and Energy’s monthly trade report released Sunday, Korea’s exports in May reached $57.27 billion, or about 79.25 trillion won. That figure represents a 1.3 percent decline from a year earlier — the first such drop since January.

Semiconductor exports totaled $13.8 billion, up 21.2 percent year on year and setting a record for May. Auto exports fell to $6.2 billion, down 4.4 percent.

By destination, exports to the United States — directly affected by the so-called Trump tariffs — declined by 8.1 percent to $10. billion. Shipments to China also dropped by 8.4 percent to $10.4 billion.

Imports in May totaled $50.33 billion, down 5.3 percent from a year earlier. As a result, the trade surplus for May stood at $6.94 billion. Korea’s cumulative trade surplus from January to May reached $19 billion, an increase of $4.2 billion compared to the same period last year.

“With exports to both the U.S. and China down, it appears that U.S. tariff measures are affecting the global economy and our exports,” said Minister of Trade, Industry and Energy Ahn Duk-geun. “In particular, international oil prices dropped to the low $60 range in May, leading to a more than 20 percent year-on-year decrease in exports of petroleum and petrochemical products — a major factor in the overall export decline.”

Ahn added, “The government will pursue mutually beneficial solutions regarding tariffs to minimize damage to our exporters and protect national interests. We will also swiftly allocate the supplementary budget, including 150 billion won in export insurance for small and midsize firms and 84.7 billion won in tariff response vouchers.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY CHO MUN-GYU [[email protected]]