U.S.-Korea New Tariff Imposed, South Korea’s August Export Growth Forecast to Slow

By ariachiang

2025-08-28

In July 2025, South Korea’s export value reached $60.8 billion, a 5.8% increase year-over-year, maintaining a stable growth trend. The Korea Customs Service reported a 7.6% year-on-year export growth for the first 20 days of August, with semiconductor exports surging 29.5%, showing strong momentum. However, according to a Reuters survey on August 27, due to the U.S. imposing a 15% tariff from August 7, nine economists predicted South Korea’s overall August export growth will slow to around 3.0%, significantly down from July, reflecting tariff pressures on export demand.

Detailed Data and Impact:

  • Exports to the U.S. are most impacted, with 1.4% growth in July and a 2.7% decline in the first 20 days of August, indicating tariffs are dampening U.S.-bound exports.
  • Semiconductors remain a key export, showing significant growth in early August, but overall export momentum is constrained by weaker U.S. market demand.
  • Imports grew 0.7% in July but are expected to slightly decline by 0.1% in August. The trade surplus shrank from $6.61 billion in July to an estimated $5.42 billion in August.
  • Experts generally agree the U.S.-Korea trade deal has reduced uncertainty, but tariffs and slowing global demand continue to pressure South Korea’s export sector.

Overall, South Korea’s exports maintained positive growth in July 2025 but are expected to slow significantly in August due to the implementation of a 15% U.S. tariff, with U.S. exports most affected. Core products like semiconductors still show momentum, but export structure and demand face limitations. In the coming months, South Korea’s export growth will confront dual pressures from tariffs and global economic slowdown, requiring companies and the government to enhance market diversification and competitiveness. Investors and industry watchers will closely monitor the full release of August trade data and evolving trade policies in early September.

Hashtags

Korea United States

Market Spotlight