South Korea Hit Hard as Trade War Begins: Exports Drop 5.2%, U.S. Shipments Down 14.3% After Trump Tariffs

South Korea Hit Hard as Trade War Begins: Exports Drop 5.2%, U.S. Shipments Down 14.3% After Trump Tariffs

Seoul, April 21, 2025 — South Korea has started to feel the impact of the first month of the renewed global trade war. New data from the Korea Customs Service shows that the country’s exports in the first 20 days of April fell by 5.2% year-over-year, with the United States leading the downturn, declining 14.3%, following President Donald Trump's aggressive tariff measures announced on April 2.

🇺🇸 U.S. Market Decline Leads the Drop
- Exports to the United States: -14.3%
- Exports to China: -3.4%
- Exports to the European Union (EU): +13.8%

The steep decline was largely attributed to:
- Implementation of new reciprocal tariffs by the U.S. on imports from several countries.
- A 25% tariff on automobile imports, effective April 3.

🚘 Automobile Industry Takes a Hit
- Car exports: -6.5%
- Auto parts exports: -1.7%
- Semiconductors: +10.7%, remaining a bright spot

📊 Context: March Still Strong Before the Downturn
In March, South Korea’s total exports had shown robust 5.5% growth. However, April's early figures indicate an immediate reversal as U.S. tariffs begin to bite.

🧠 Outlook & Analyst Commentary
Analysts warn that unless the tariff policies are softened, South Korea’s export-driven economy could face sustained pressure. The automotive sector in particular, which is highly exposed to U.S. trade policy, remains vulnerable to further shocks.