South Korea’s Exports Plunge 24% in Early May Amid Rising Trade Tensions

South Korea’s Export Collapse Amid Escalating Global Trade Frictions

In a dramatic turn for South Korea’s export-driven economy, the country experienced a staggering 24% plunge in export volumes during early May 2025. This sharp contraction is largely linked to the lingering effects of tariffs introduced under the Trump administration in the United States, which continue to disrupt trade flows. Given South Korea’s heavy dependence on international commerce as a growth engine, this downturn has sparked alarm among economists and government officials alike.

The decline not only exposes vulnerabilities within South Korea’s export sectors but also reflects broader challenges posed by shifting global trade policies and protectionist trends. Industries such as electronics, machinery, petrochemicals, and steel have borne the brunt of these disruptions, with key markets like China and the U.S.—which together account for over 40% of South Korean exports—scaling back orders significantly.

Export Performance by Sector: A Snapshot

Tariff Implications on Key South Korean Industries: An In-Depth Analysis

The imposition of U.S.-origin tariffs has sent shockwaves through several cornerstone industries within South Korea’s economy. The automotive sector faces escalating production expenses due to increased costs for imported…