Exports to the US Down 6.8% Last Month... Trade Surplus Shrinks by $900 Million

Ministry of Trade, Industry and Energy announces April 2025 export and import trends
Overall exports rise 3.7% in April, marking third consecutive month of growth
Ahn Dukgeun: "All available resources will be focused on minimizing damage from US tariff measures"

Last month, exports to the United States declined by nearly 7%. As exports decreased, the trade surplus with the United States also fell by $900 million. However, despite the decrease in exports to the US, overall exports continued to increase for the third consecutive month, as exports to major destinations such as China, ASEAN, and the European Union (EU) rose.

According to the "April Export and Import Trends" released by the Ministry of Trade, Industry and Energy on May 1, export value reached $58.21 billion, a 3.7% increase compared to the same period last year, marking the highest April performance on record. The upward trend, which began in February this year, has continued for three consecutive months.

Among the 15 major export items, exports of seven items increased. Exports of semiconductors, the largest export item, reached a record high for April at $11.7 billion, up 17.2% year-on-year. This was due to the rebound in the fixed price of DRAM (DDR4 8Gb) for the first time in 12 months since April last year, as well as continued strong exports of high value-added memory products such as high-bandwidth memory (HBM). Exports of wireless communication devices also increased by 26.5% to $1.5 billion, led by smartphone exports ($400 million, +61.1%), continuing an upward trend for the third consecutive month.

Bio-health exports posted a record April high of $1.4 billion (+14.6%) as exports of biopharmaceuticals ($900 million, +21.8%) saw a significant increase. Steel exports rose by 5.4% to $3 billion, turning positive for the first time in four months. Secondary battery exports broke a 16-month decline since December 2023, increasing by 13.7% to $700 million. Ship exports also grew by 17.3% to $2 billion, marking two consecutive months of growth.

Among the two major export items, automobile exports fell by 3.8% but still recorded the highest performance of the year at $6.5 billion. By segment, exports of internal combustion engine vehicles and pure electric vehicles declined, but hybrid vehicle exports increased for the 14th consecutive month. Auto parts exports rose by 3.5% to $2 billion, turning positive for the first time this year.

In addition to the 15 major export items, exports of agricultural and marine products ($1.1 billion, +8.6%) set an all-time record, and cosmetics exports ($1 billion, +20.8%) reached the highest April performance ever, driven by growing global preferences for K-food and K-beauty. Exports of electrical equipment also posted a record high of $1.4 billion (+14.9%), led by items such as transformers and cables.

By region, exports increased in seven out of the nine major markets, excluding the United States and some others. Exports to China rose by 3.9% to $10.9 billion, as semiconductor exports rebounded from a negative trend earlier in the year and wireless communication device exports saw double-digit growth.

Exports to ASEAN increased by 4.5% to $9.4 billion, driven by strong semiconductor and steel exports. Exports to the EU achieved a record high for any period at $6.7 billion (+18.4%), with double-digit growth in automobiles and bio-health products.

Exports to India reached a record April high of $1.7 billion (+8.8%) as exports of semiconductors, general machinery, and steel increased. Exports to Central and South America turned positive, reaching $2.6 billion (+3.9%). Exports to the Middle East grew for the third consecutive month to $1.7 billion (+1.6%), while exports to the Commonwealth of Independent States (CIS) increased for the second consecutive month to $1.2 billion (+37.2%).

Exports to the United States declined. Despite strong exports of petroleum products, secondary batteries, and wireless communication devices, exports of automobiles and general machinery, two major export items, decreased, resulting in a 6.8% year-on-year drop to $10.6 billion. Consequently, the trade surplus with the US also decreased by $900 million year-on-year to $4.5 billion.

Last month, imports fell by 2.7% to $53.32 billion. Energy imports dropped by 20.1% year-on-year to $10 billion due to decreases in crude oil (-19.9%) and gas (-11.4%) imports. Imports excluding energy, including semiconductor equipment (+18.2%), increased by 2.4% to $43.4 billion.

The trade balance recorded a surplus of $4.88 billion, an increase of $3.6 billion compared to the same month last year. The cumulative trade surplus from January to April this year also rose by $2.3 billion to $12.2 billion.

Minister of Trade, Industry and Energy Ahn Dukgeun stated, "Despite the decrease in exports to the US in April, overall exports continued to show positive growth for the third consecutive month as exports to major countries increased." He added, "In particular, April saw record-high export performances not only for key items such as semiconductors and bio-health, but also for cosmetics, agricultural and marine products, and electrical equipment, demonstrating that our export competitiveness remains robust." He further emphasized, "The government will mobilize all available resources to minimize damage to our companies and maintain export competitiveness amid uncertainties in the export environment, such as US tariff measures."

To this end, the government will continue negotiations with the US for tariff exemptions, while thoroughly implementing previously announced "pan-government emergency export measures" and item-specific response plans. In particular, the government plans to expand support for trade finance and "tariff response vouchers," which are in high demand among export companies. Additionally, the government will actively identify and resolve on-site difficulties through meetings and field visits by export industry, and will host the "Korea Excellent Products Fair" and dispatch a trade delegation to secure opportunities for Korean exporters in conjunction with "Korea Day" at the Osaka Expo on May 13.