Seoul: The government will work to successfully conclude tariff negotiations with the United States to minimize risks for export companies, the first vice industry minister said Tuesday. "Our export companies are facing heightened uncertainties ahead of the imposition of U.S. reciprocal tariffs on Aug. 1," First Vice Industry Minister Moon Shin-hak stated in a meeting to review export trends.
According to Yonhap News Agency, the looming deadline has prompted the government to intensify its efforts to negotiate with the U.S. to protect national interests. The U.S. plans to impose 25 percent reciprocal tariffs on South Korean products starting August 1, creating significant concerns for South Korean exporters.
Recent data from the Korea Customs Service indicated a 2.2 percent decrease in South Korea's exports, amounting to US$36.1 billion in the first 20 days of this month compared to the same period last year. Specifically, outbound shipments to the U.S. dropped by 2.1 percent to $6.42 billion, affected by U.S. President Donald Trump's sweeping tariff measures.
The impact has been particularly severe on certain sectors. Steel exports plummeted by 9.7 percent to $2.39 billion, largely due to the U.S. administration's 50 percent tariffs on all steel imports. Similarly, exports of petroleum and petrochemical products declined by 17.5 percent and 13.9 percent, respectively, amid a global drop in oil prices.
Conversely, some sectors have shown resilience. Semiconductor exports increased by 16.5 percent to $7.89 billion, and auto exports grew by 3.9 percent to $3.63 billion. Additionally, outbound shipments of ships saw a significant surge of 172.2 percent to $1.44 billion.