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Key Points

South Korea is experiencing a significant decline in exports to the United States and China due to ongoing tariff tensions. Trade Minister Cheong In-kyo revealed that exports dropped 2.4% in the first 20 days of May compared to last year. The government is actively engaging in technical consultations with the US to seek a complete tariff exemption and exploring mutually beneficial solutions. Despite the challenges, Seoul remains committed to protecting its national economic interests through strategic negotiations and support programs for exporters.

Key Points: South Korea Exports Decline Amid US China Tariff Tensions

  • Exports to US and China drop 3.3% and 4.1% respectively
  • First four months show 0.7% overall export decrease
  • Negotiations ongoing for tariff exemptions
  • Government pledges support for exporters
2 min read

South Korea's exports to US, China likely to decline further

South Korea's trade minister warns of export challenges as US-China tariff measures impact bilateral trade and economic relations

"In May, the impact of the U.S. tariff measures is expected to be fully reflected - Cheong In-kyo, Trade Minister"

Seoul, May 21

South Korea's exports to the United States and China are expected to decline further in May, as the impact of the Donald Trump administration's sweeping tariff scheme has begun to materialise, the country's top trade official said on Wednesday.

Trade Minister Cheong In-kyo made the assessment after government data showed that exports declined 2.4 percent in the first 20 days of May compared to a year earlier, due to a drop in shipments to the U.S. amid ongoing tariff measures.

During the first four months of 2025, cumulative exports totaled $217.9 billion, representing a 0.7 percent decrease compared to the same period last year, according to data from the Ministry of Trade, Industry and Energy, reports Yonhap news agency.

Shipments to the U.S. and China went down 3.3 percent and 4.1 percent, respectively, while exports to ASEAN and the European Union rose 5.9 percent and 2.1 percent, respectively.

"In May, the impact of the U.S. tariff measures is expected to be fully reflected, leading to a decline in exports to the U.S. and China," Cheong said during a meeting with officials overseeing export-related issues.

"We will maintain an emergency response system in cooperation with relevant agencies and continue to provide tailored support to address export challenges in each region," he added.

The government has pledged to swiftly execute the funds allocated through the supplementary budget, including 84.7 billion won for the exporter voucher program and 150 billion won for small and mid-sized exporters through trade insurance.

"Technical consultations with the U.S. on the tariff policy are under way, and we will actively engage in discussions to find mutually beneficial solutions, while prioritizing our national interest," Cheong said.

South Korea and the United States began a second round of working-level discussions in Washington on Tuesday (U.S. time), as Seoul has sought a complete exemption from the tariff scheme.

Last month, the US began imposing reciprocal tariffs on partner nations, including 25 percent duties on South Korea, only to pause them shortly afterward to allow for one-on-one negotiations.

Seoul and Washington subsequently agreed to work toward a "package" deal on trade and other related issues before July 8, when Trump's 90-day pause on reciprocal tariffs is to expire.

- IANS

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Reader Comments

Here are 6 diverse Indian perspective comments for the article:
R
Rajesh K.
This shows how dependent Asian economies are on US-China trade dynamics. India should learn from this and strengthen domestic manufacturing under Make in India. We can't afford such export shocks when our economy is growing.
P
Priya M.
Interesting to see ASEAN exports growing while US/China decline. Maybe South Korea should focus more on Southeast Asia like India is doing with Act East policy. Their tech products would do well here too! 🇮🇳
A
Amit S.
Trump's tariffs are hurting everyone. Remember when he did this to Indian steel exports? Our government handled it better by diversifying markets. South Korea needs similar long-term strategy beyond just US-China.
S
Sunita R.
As someone who uses Samsung phones and LG appliances, I hope this doesn't lead to price hikes in India 😅 But seriously, global trade wars affect us all. Maybe time for more India-Korea trade partnerships?
V
Vikram J.
While the situation is tough for Korea, India should watch carefully. Our exports to US are growing - we must protect this advantage. The government should preempt any potential tariff threats with proactive diplomacy.
N
Neha P.
The 150 billion won support for SMEs is noteworthy. India should also increase support for our small exporters facing global headwinds. Aatmanirbhar Bharat needs strong export sector too, not just domestic focus.

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