South Korea’s exports fell 2.4% in early May, highlighting the growing impact of US tariffs on the nation’s trade performance.
Shipments totaled $31.97 billion from May 1-20, down from the same period in 2024, according to Korea Customs Service data released Tuesday. Exports to the US plummeted nearly 15% as the Trump administration’s 25% tariffs on steel, aluminum, and vehicles took effect.
Key sectors hit hardest include passenger cars, which dropped 6.3%, petroleum products down 24.1%, and steel products falling 12.1%. Auto exports to the US specifically plunged 20% year-on-year last month. The setback comes after three consecutive months of export growth from February through April.
Shipments to China, South Korea’s largest trading partner, decreased 7.2%. The country found partial relief through increased exports to Taiwan (28.2%), Malaysia (28%), Hong Kong (4.5%), and Vietnam (3%).
Imports declined 2.5% to $32.22 billion, resulting in a $253 million trade deficit for the period.
The trade ministry expects further deterioration in US and Chinese exports as tariff impacts deepen. Officials have pledged emergency support, including 84.7 billion won ($61.3 million) in tariff response vouchers and 150 billion won ($108.7 million) in trade insurance for small and medium enterprises.
