Exports Up 7.6% by August 20 on Strong Semiconductors and Automobiles... Exports to U.S. Down 2.7% Amid Tariff Impact (Comprehensive)

Export Growth Driven by Semiconductors and Automobiles
Steel Exports to the U.S. Decline 4.5% Amid 50% Tariff

Exports from August 1 to 20 increased by more than 7% year-on-year, driven by strong performance in key sectors such as semiconductors and automobiles. However, steel exports, which are subject to a 50% tariff under the second Donald Trump administration in the United States, continued to struggle, and overall exports to the U.S. also declined by nearly 3%.

According to export and import statistics released by the Korea Customs Service for August 1 to 20, exports totaled $35.5 billion, up 7.6% from the same period last year. The number of working days was 14.5, the same as last year. Taking this into account, average daily exports amounted to $2.45 billion, also up 7.6%.

Steel products are piled up at the export yard of Pyeongtaek Port, Gyeonggi Province. (File photo)

Semiconductors and automobiles, Korea's main export items, increased by 29.5% and 21.7% respectively year-on-year, leading the overall growth. Exports of ships (28.9%) and precision instruments (2.1%) also rose. In contrast, exports of steel products, which face a 50% tariff in the U.S., fell by 4.5%. Steel exports have declined for three consecutive months from May (-12.4%) through July this year. Exports also decreased for petroleum products (-3.9%), auto parts (-3.1%), wireless communication devices (-11.6%), and home appliances (-18.7%). By country, exports increased to China (2.7%), the European Union (EU, 0.1%), Vietnam (9.6%), and Taiwan (59.1%), while exports to the United States (-2.7%) and others declined.

Imports for August 1 to 20 amounted to $34.7 billion, a 0.4% increase from the same period last year. Imports of semiconductors (9.4%), gas (4.3%), and machinery (3.2%) rose, while imports of crude oil (-8.8%) and petroleum products (-15.7%) declined. By country, imports increased from China (3.8%), the EU (5.5%), and Taiwan (28.2%), but decreased from the United States (-0.2%) and Japan (-10.2%).

The trade balance recorded a surplus of $833 million. Including this, the cumulative trade surplus from the beginning of the year to August 20 reached $35.286 billion.

The outlook for exports remains challenging. For the entire month of August, there is one less working day compared to last year, and the U.S. government began imposing high import tariffs on steel and aluminum derivative products on August 18 (local time), raising concerns about a second wave of Trump tariffs impacting Korean exporters. According to the Korea International Trade Association, the main items affected by this measure include transformers, refrigerators and freezers, construction machinery, and auto parts, with total U.S. exports of these items amounting to $11.89 billion (approximately KRW 16.627 trillion).

An official from the Ministry of Trade, Industry and Energy stated, "For August as a whole, the number of working days is 22.5, one day less than the same period last year, which could negatively affect exports of items such as automobiles and general machinery that are highly sensitive to the number of working days. Although the immediate impact of tariffs on steel and aluminum derivative products will be limited, we will do our best to minimize any negative effects going forward."

This content was produced with the assistance of AI translation services.