US tariffs take hit on South Korean exports

ANKARA

South Korea said the US's so-called "reciprocal" tariff policies seem to be affecting its exports, which have dropped 1.3% from a year earlier in May, snapping a three-month winning streak, media reports said Sunday.

"The US tariffs seem to be affecting the global economy and South Korea's exports, proven by a decrease in South Korea's exports to the two biggest markets -- the US and China," Industry Minister Ahn Duk-geun was quoted by Seoul-based Yonhap News.

Government data showed Sunday that outbound shipments came to $57.3 billion last month, compared with $58.02B last May.

Imports dipped 5.3% year-on-year to $50.3B, resulting in a trade surplus of $6.94 billion.

Shipments to the US shrank 8.1% from a year ago to $10B, mainly due to the weak exports in the automotive sector, hit by the Trump administration's 25% tariffs.

Exports to China also slid 8.4% year-on-year to $10.4B on low demand for semiconductors and petrochemical products, while exports to the Association of Southeast Asian Nations (ASEAN) fell 1.3% to $10 billion.

In contrast, exports to the European Union increased 4% to $6B, up for the third successive month due to a strong demand for automobiles and semiconductors.

"To minimize the damage to our export companies and maximize national interest, the government will clearly communicate our position on US tariff measures to the Trump administration and work toward mutually beneficial solutions," said Ahn.

Donald Trump, in recent months, has imposed a series of sweeping tariffs on Washington's trading partners, triggering a global trade war.

Trump, however, announced a 90-day pause on the implementation of his "Liberation Day" tariff, offering temporary relief to trading partners and an opportunity to negotiate with Washington.

At a rally Friday in the state of Pennsylvania, Trump said he is going to double tariffs on steel imports from 25% to 50%, which "will even further secure" the steel industry in the US.

*Writing by Aamir Latif