South Korea’s preliminary April trade data offers an early signal of how Donald Trump’s protectionist push is affecting global trade.
In the first 20 days of April, exports fell 5.2% year-over-year — a sharp turnaround from the 5.5% rise recorded in March.
The data, adjusted for working-day differences, showed exports to the US and China declined by 14.3% and 3.4%, respectively. In contrast, shipments to the EU rose 13.8%, while Taiwan saw a 22% increase.
The numbers come shortly after the US imposed a 25% tariff on auto imports and a 10% duty on other goods earlier this month. This follows metal import tariffs announced in March. The drop in exports underlines the vulnerability of South Korea’s export-driven economy.
Key sectors were hit hard — auto exports fell 6.5%, steel declined 8.7%, and oil products sank 22%. However, semiconductor exports rose 10.7%, offering a rare bright spot.
Overall imports dropped 11.8%, resulting in a trade deficit of $100 million. The US remains South Korea’s sixth-largest trading partner, and its trade surplus with the US surged 25% in 2024 to $55.7 billion — a key factor behind Trump’s tariff decision.
Automobiles and auto parts comprise a large share of South Korean exports to the US and are particularly at risk. The new auto tariffs could seriously impact the sector, which sent nearly half of its $70.8 billion in vehicle exports to the US last year.
South Korean officials, including Industry Minister Ahn Duk-geun and Finance Minister Choi Sang-mok, are heading to Washington this week to initiate trade talks. However, uncertainty looms with national elections set for 3rd June.
Meanwhile, the Bank of Korea kept its benchmark interest rate at 2.75% but flagged growing downside risks. Governor Rhee Chang-yong cited deteriorating trade conditions and political uncertainty as major concerns, warning of possible negative growth in the first quarter.
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