South Korea’s export performance weakened in the first 20 days of May, falling by 2.4% year-on-year, as newly imposed U.S. tariffs disrupted trade flows and dampened demand from key global partners, official data has shown.
According to figures from the Korea Customs Service, exports for the period totaled $32 billion, reflecting a downturn linked largely to weaker sales to the United States. Shipments to the U.S. plummeted 14.6%, while exports to China and the European Union declined by 7.2% and 2.7%, respectively.
The United States had earlier imposed a sweeping 25% tariff on South Korean goods, though the rate was temporarily reduced to 10% for a 90-day window beginning in April. Despite this temporary relief, critical sectors such as steel, aluminum, and automobiles remain subject to the full 25% duty.
Last month, South Korean exports saw a surprising boost, driven by strong demand for semiconductors. However, trade officials warn that escalating tensions are now beginning to hit other major industries, especially the auto sector.
A key highlight in May’s data was the performance of semiconductors — South Korea’s top export — which surged by 17.3% year-on-year. Analysts suggest this spike may be linked to stockpiling of high-tech chips, including those used in artificial intelligence applications. Meanwhile, automobile and steel exports declined by 6.3% and 12.1%, respectively.
Other sectors did not fare much better. Petroleum product exports fell by 24.1%, home appliances by 19.7%, and wireless communication devices by 5.9%.
To cushion the impact of the U.S. tariffs, the South Korean government announced an emergency support package totaling 28.6 trillion won (approximately $20.5 billion) to aid domestic firms.
“The government is taking a preemptive approach to the impact of tariffs by formulating an all-ministry export strategy,” the finance ministry said in a statement. It also emphasized efforts to “fundamentally strengthen the ecosystem of high-tech industries such as semiconductors, AI, and secondary batteries.”
Trade officials are continuing negotiations with their U.S. counterparts, with the goal of finalizing a comprehensive tariff exemption deal by early July.
Meanwhile, imports also dipped by 2.5% year-on-year to $32.2 billion during the May 1–20 period, leading to a modest trade deficit of $300 million.
