Seoul: South Korean exports are anticipated to be significantly affected by U.S. tariffs starting in the second quarter, as stated by the trade minister. Trade Minister Cheong In-kyo, during a meeting with export-related officials, highlighted the unease among local industries due to the unprecedented uncertainties surrounding the tariffs imposed by the Donald Trump administration. These tariffs are expected to have a tangible impact beginning in the second quarter.
According to Yonhap News Agency, Cheong affirmed that the government is committed to collaborating with relevant authorities to vigilantly monitor the export landscape across various regions. The government plans to promptly devise strategies to alleviate the challenges faced by local exporters. To support the affected industries, the government has declared its intention to inject trillions of won in financial aid to help exporters cope with the significant tariffs targeting key sectors such as steel, aluminum, and automobiles.
In the first quarter, South Korea's exports experienced a decline of 2.1 percent compared to the previous year, amounting to US$159.8 billion. This downturn was attributed to the weak performance of the auto and machinery sectors, as per government data. Additionally, earlier this month, President Trump imposed steep "reciprocal" tariffs on trading partners, including a 25 percent duty on South Korea. However, a 90-day suspension of these new measures was later announced to provide time for negotiations.