South Korea Export Growth Hit by Higher U.S. Tariffs

South Korea’s export growth likely slowed in August, weighed down by higher U.S. tariffs introduced after a trade deal with the Trump administration, a Reuters poll showed, Jihoon Lee reported.

In the first 20 days of August, exports rose 7.6%, led by a 29.5% jump in semiconductors. U.S.-bound shipments, however, fell 2.7%.

Exports from Asia’s fourth-largest economy are forecast to have risen 3.0% from a year earlier, after gaining 5.8% in July, according to a median estimate from nine economists.

That would mark the third consecutive month of year-on-year increases, driven by strong semiconductor demand, but also the weakest gain in that streak.

“Full-month data will be lower than the earlier 20-day data on a daily average basis due to frontloading before ‘reciprocal’ tariffs came into force on August 7,” said Meritz Securities economist Stephen Lee, referring to Trump’s country-specific tariffs.

South Korea is the first major exporting economy to report trade figures each month, and investors watch the data closely for global demand trends.

In late July, Seoul reached a trade deal with President Donald Trump setting U.S. tariffs on South Korean imports at 15% — lower than the previously threatened 25% but above the 10% baseline.

The tariffs took effect on August 7. In the first 20 days of August, exports rose 7.6%, led by a 29.5% jump in semiconductors. U.S.-bound shipments, however, fell 2.7%.

“It is positive that the trade deal reduced external uncertainty to some degree, but exports to the U.S. will continue to fall under tariffs,” said Chun Kyu-yeon, an economist at Hana Securities.

“The weakening trend is expected to continue amid a broader slowdown in global demand triggered by U.S. tariffs.”