South Korea July exports soar to record amid US tariff pressures
South Korean Trade Outshines Expectations in July
South Korea’s exports climbed to a record high in July, while imports also rose, according to government figures published Friday. The surge was driven by strong overseas demand for semiconductors and automobiles, even as U.S. tariffs created uncertainty.
July Export Performance
- Exports exceeded $60 billion, up nearly six percent from last year.
- Semiconductors—South Korea’s main export—generated over $14 billion, the highest ever for July, a 33‑percent jump from the previous year.
- Export growth was largely fueled by AI‑related products, such as high‑bandwidth memory (HBM) chips.
Tariff Landscape and Trade Negotiations
- South Korea was initially hit with a 25‑percent tariff by the United States, but secured a last‑minute agreement for a 15‑percent rate.
- A 50‑percent duty remains on exports like steel and aluminium.
- Despite declines in steel and auto‑parts exports due to tariffs, shipments to the United States rose over the past year, driven by increased exports of semiconductors and wireless communication devices.
Industry and Trade Minister’s Statement
The trade environment was marked by “extreme uncertainty” in July, as the U.S. prepared to impose new tariffs starting August 1, stated Industry and Trade Minister Kim Jung‑kwan. Despite these difficult conditions, South Korean companies made an all‑out effort to maintain export momentum, achieving a record‑high performance for the month.
Future Trade Relations
- Kim noted that trade negotiations with the United States had removed much of the uncertainty surrounding the export environment and ensured that Korean exporters can now compete in the U.S. market on equal or more favourable terms.
- U.S. President Donald Trump announced that his South Korean counterpart Lee Jae‑myung will visit the White House for bilateral talks within the next two weeks, with experts expecting more details of the trade agreement to be announced at that time.
