South Korea’s exports rose in August but fell short of forecasts as new U.S. tariffs hit shipments.
- Exports grew 1.3% y/y to $58.4 billion, weaker than the 3.0% expected and slowing from July’s 5.9% gain.
The downturn was driven by a 12% plunge in U.S.-bound exports, the sharpest since May 2020, after tariffs on Korean goods were lifted to 15% from the prior 10%, though less severe than the threatened 25%. Cars, machinery and steel were hit, while semiconductors and telecom equipment, exempt from tariffs, saw gains.
By market,
- exports to China fell 2.9%,
- while shipments to Southeast Asia rose 11.9%
- to Taiwan surged 39.3% on robust chip demand.
By product, semiconductor exports jumped 27.1%, autos gained 8.6% and ship exports rose 11.8%. Energy-related exports weakened, with petroleum down 4.7% and petrochemicals down 18.7%.
Imports fell 4.0% y/y to $51.9 billion, against expectations for a smaller decline, leaving a trade surplus of $6.5 billion — slightly narrower than July’s $6.6 billion.
