Seoul: South Korea’s exports increased by 3.7 percent in April compared to the previous year, marking the third consecutive month of growth. However, exports to the United States experienced a significant decline, attributed to the Trump administration’s high tariffs, as revealed by the Ministry of Trade, Industry and Energy.

According to Yonhap News Agency, South Korea’s outbound shipments reached a record $58.2 billion for April, while imports fell by 2.7 percent to $53.3 billion, resulting in a trade surplus of $4.88 billion. Exports to the U.S. decreased by 6.8 percent to $10.6 billion, leading to a $900 million reduction in South Korea’s trade surplus with the U.S. from the previous year.

The decline in shipments to the U.S. was primarily due to reduced exports of automobiles, semiconductors, and machinery. Auto exports to the U.S. dropped by 16.6 percent to $2.51 billion, chip exports decreased by 31 percent to $400 million, and machinery shipments fell by 22.6 percent to $970 million. Despite these declines, exports of petroleum products, rechargeable batteries, and wireless communications equipment to the U.S. increased.

Park Jung-sung, Deputy Minister for Trade and Investment, noted that U.S. tariffs impacted South Korea’s exports, although the degree varied by sector. He highlighted that the automotive sector was affected not only by tariffs but also by fluctuating demand for electric vehicles (EVs). However, exports of auto parts to the U.S. increased as companies prepared for impending U.S. tariffs on auto parts.

Exports to China grew by 3.9 percent to $10.9 billion, driven by demand for smartphones and semiconductors, while shipments to ASEAN countries increased by 4.5 percent to $9.4 billion, supported by the semiconductor and steel sectors. Exports to the European Union surged by 18.4 percent to a record $6.7 billion, and shipments to India rose by 8.8 percent to $1.7 billion.

Semiconductor exports rose by 17.2 percent to $11.7 billion, the highest for any April, fueled by an increase in the price of 8-gigabit DDR4 DRAM and demand for high-value products like high-bandwidth memory (HBM). Wireless communications equipment exports, including smartphones, increased by 26.5 percent to $1.5 billion, continuing a three-month growth trend.

Biohealth product exports soared by 14.6 percent to $1.4 billion, the highest for April, while steel shipments grew by 5.4 percent to $3 billion. Exports of secondary batteries and ships increased by 13.7 percent and 17.3 percent, reaching $700 million and $2 billion, respectively. However, automobile exports, a key export item, declined by 3.8 percent to $6.5 billion due to weaker demand for internal combustion engine cars and EVs.

Industry Minister Ahn Duk-geun stated that exports continued to rise for the third straight month in April, despite the decrease in U.S. exports, due to larger shipments to other major countries. He emphasized the government’s commitment to maintaining the country’s export competitiveness and minimizing the impact of U.S. tariffs and other trade uncertainties.