Seoul: South Korea's exports fell by 1.3 percent in May compared to the same month last year, marking an end to a three-month streak of growth. This decline is attributed to a significant drop in shipments to the United States, following the implementation of extensive tariff policies by the U.S. administration under President Donald Trump, as revealed by government data released on Sunday. The total value of outbound shipments was recorded at US$57.3 billion for the month.
According to Yonhap News Agency, the Ministry of Trade, Industry and Energy compiled the data showing that imports also declined by 5.3 percent year-on-year, totaling $50.3 billion. This resulted in a trade surplus of $6.94 billion for South Korea. The decrease in exports to the U.S. was notably sharp, with an 8.1 percent fall to $10 billion, primarily due to weakened demand in the automotive sector impacted by the 25 percent tariffs imposed by the Trump administration.
Exports to China experienced a similar downturn, falling by 8.4 percent year-on-year to $10.4 billion, as demand for semiconductors and petrochemical products weakened. Similarly, shipments to the Association of Southeast Asian Nations (ASEAN) decreased by 1.3 percent, reaching $10 billion.
Conversely, exports to the European Union showed a positive trend, increasing by 4 percent to $6 billion. This growth, sustained over three months, was driven by strong demand for automobiles and semiconductors. Industry Minister Ahn Duk-geun commented on the situation, stating, "The U.S. tariffs seem to be affecting the global economy and South Korea's exports, proven by a decrease in South Korea's exports to the two biggest markets -- the U.S. and China."
Minister Ahn also noted the impact of the sharp drop in international oil prices, which fell to the low $60 range in May. This price decline led to a more than 20 percent year-on-year reduction in exports of petroleum and petrochemical products, further contributing to the overall decrease in outbound shipments.