Tariffs imposed under the Trump administration have begun to drag down Korean exports, particularly to the United States, as companies on both sides of the Pacific face growing costs and uncertainty.   Korea’s exports totaled $33.9 billion from April 1 to 20, down 5.2 percent from $35.7 billion during the same period last year, according to preliminary data from the Korea Customs Service on Monday.   U.S.-bound exports fell by 14.3 percent from $7.2 billion to $6.6 billion, driving the overall export decline.   Korean exporters had previously traded freely with the United States under the Korea-U.S. FTA, which effectively eliminated tariffs.   But Washington has since imposed a 10 percent base tariff and 25 percent duties on key items like steel and automobiles, adding strain across the board.   Exporters face shrinking margins when they cover the tariffs themselves, while importers find it difficult to accept equivalent price increases. As uncertainty continues, businesses have begun scaling back shipment volumes, contributing to an overall drop in trade activity.   Exports declined across nine of Korea’s 10 major export categories this month.   Semiconductors rose 10.7 percent, but all other sectors took a major plunge. Home appliance exports fell 29.9 percent, computer peripherals 23.3 percent and petroleum products 22 percent. Car and steel exports, both subject to 25 percent tariffs, fell 6.5 and 8.7 percent, respectively.   The Ministry of Trade, Industry and Energy took a cautious view of the decline.   “International oil prices have dropped from around $80 per barrel last year to the $60 range this year, which has impacted exports in sectors directly tied to energy prices,” a ministry official said. “Although automobile exports fell 6.5 percent this month, they reached a record high in April 2024, so the current figure is not necessarily weak.”   The ministry also noted that this April included one additional business day compared to last year, suggesting that the final monthly export figures may reflect a narrower decline.   From Jan. 1 to April 20, cumulative exports totaled $193.7 billion, down 2.7 percent from $199.1 billion a year earlier.   While January exports fell 10.3 percent, February posted a gain of 0.7 percent and March recorded a 3 percent increase. U.S.-bound shipments also rose 1 percent in February and 2.3 percent in March. rade researchers believe the March increase resulted from U.S. importers rushing to secure inventory before tariffs took effect.   “U.S. companies likely boosted orders in March as they adjusted inventories ahead of the tariff implementation,” said Jang Sang-sik, head of the Center for International Trade and Commerce at the Korea International Trade Association.   “Given that the tariffs have just taken effect this month, we’ll need to monitor data from May and June to fully assess their impact," he said.   Imports also dropped sharply. From April 1 to 20, imports totaled $34 billion, down 11.8 percent from $38.6 billion a year earlier.   Energy imports posted the steepest declines, with crude oil down by 29.5 percent compared to the same period last year, gas down by 21.3 percent and coal down by 33.2 percent.   Korea recorded a $100 million trade deficit during the same period, with the reduction in U.S.-bound Korean exports helping narrow Washington's trade deficit with Seoul.   U.S. imports reached $4 billion, down 10.1 percent from the previous year, while the trade surplus fell to $2.6 billion — $200 million less than the same period last year.   The Korean government plans to hold high-level trade talks with the United States on Thursday, focusing on three sectors: trade balance, shipbuilding and liquefied natural gas (LNG).   Finance Minister Choi Sang-mok and Trade Minister Ahn Duk-geun will lead the Korean delegation. U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamison Greer will represent the United States in the “2+2” talks.   “Korea is ready to discuss ways to reduce its trade surplus, including purchases of U.S. LNG and passenger aircraft,” acting President and Prime Minister Han Duck-soo said in a recent interview.   (ICE SEOUL)

Fonte notizia: KOREA JOONGANG DAILY