South Korea Attributes Export Decline to US Tariffs
(MENAFN) South Korea has indicated that the United States' so-called "reciprocal" tariff strategies appear to be influencing its international trade, as the nation's exports declined by 1.3 percent in May compared to the same month last year.
This downturn ends a three-month period of growth, according to various media outlets.
Industry Minister Ahn Duk-geun stated, "The US 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 US and China," as quoted by s Seoul-based news agency.
Official government statistics released on Sunday revealed that South Korea's overseas sales amounted to USD57.3 billion in May, falling from USD58.02 billion during the same period in the previous year.
At the same time, the country's imports dropped by 5.3 percent to USD50.3 billion, leading to a trade surplus of USD6.94 billion.
Exports to the United States experienced a notable contraction of 8.1 percent, totaling USD10 billion.
This was largely attributed to decreased vehicle exports, which have been adversely affected by the 25 percent tariffs imposed during the Trump administration.
Similarly, exports to China fell by 8.4 percent year-over-year to USD10.4 billion, reflecting weaker demand for semiconductor and petrochemical products.
Shipments to the Association of Southeast Asian Nations (ASEAN) also decreased, slipping 1.3 percent to USD10 billion.
Conversely, exports to the European Union saw a 4 percent rise, reaching USD6 billion.
This marks the third consecutive month of growth, driven by increasing demand for cars and semiconductor goods.
In response to these developments, Minister Ahn emphasized, "To minimize the damage to our export companies and maximize national interest, the government will clearly communicate our position on US tariff measures to the Trump administration and work toward mutually beneficial solutions."
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