U.S. Exports in May Drop 8.1% Due to Trump Auto Tariffs (Update)

Ministry of Trade, Industry and Energy Releases Export and Import Trends for May 2025

U.S. exports in May dropped by more than 8% following tariff measures implemented by the Trump administration. This was mainly due to a sharp decline in automobile exports, which are the largest export item.

The Ministry of Trade, Industry and Energy announced the "Export and Import Trends for May 2025" on June 1. According to the report, exports in May totaled $57.27 billion, down 1.3% compared to the same month last year. When adjusted for the number of business days, average daily exports increased by 1.0% year-on-year to $2.66 billion.

Among the 15 major export categories, exports increased in five items. Semiconductor exports, the top export product, reached a record high for May at $13.8 billion (+21.2%), driven by continued strong demand for high-value memory products such as high-bandwidth memory (HBM) and DDR5, as well as rising fixed prices. Exports of wireless communication devices rose by 3.9% to $1.3 billion, with smartphone exports ($420 million, +30.0%) performing particularly well, marking the fourth consecutive month of growth. Computer SSD exports turned positive, increasing by 2.3% to $1.1 billion.

Bio-health exports ($1.4 billion, +4.5%) grew for the fourth consecutive month, supported by a 13.7% increase in bio-pharmaceutical exports ($910 million). Ship exports also rose for the third consecutive month, up 4.3% to $2.2 billion.

Automobile exports fell by 4.4% year-on-year to $6.2 billion. Exports to the U.S. declined significantly due to tariff measures and the impact of a new plant opening in Georgia. However, strong electric vehicle exports to the European Union and a sharp increase in used car exports ($700 million, +71.0%) helped maintain solid performance, with monthly automobile exports exceeding $6 billion for the fourth consecutive month.

Exports of petroleum products and petrochemicals were $3.6 billion (-20.9%) and $3.2 billion (-20.8%), respectively. Since the inauguration of the Trump administration, the continued low oil price trend has led to a sharp drop in prices for both items, resulting in export declines of more than 20%.

In May, exports increased to two out of the nine major markets. Exports to China fell by 8.4% to $10.4 billion, mainly due to declines in semiconductor and petrochemical exports, which are the largest export items to China. Exports to the U.S. decreased by 8.1% to $10 billion. Despite strong performance in wireless communication devices, petroleum products, and secondary batteries, the sharp drop in automobile exports, the largest export item, led to a continued decline following April.

Exports to ASEAN countries fell by 1.3% to $10 billion, as sharp declines in petroleum products and petrochemicals offset double-digit growth in semiconductor exports. Exports to the EU rose by 4.0% to $6 billion, driven by automobiles and semiconductors, marking the third consecutive month of growth. Exports to the Commonwealth of Independent States (CIS) also increased by 34.7% to $1.2 billion.

Outside the nine major markets, exports to Taiwan, a key semiconductor export destination, surged by 49.6% year-on-year to $3.8 billion, achieving the highest May performance on record.

Imports last month fell by 5.3% to $50.33 billion. Energy imports dropped by 12.8% year-on-year to $10.2 billion due to decreases in crude oil (-14.0%) and gas (-0.3%) imports. Non-energy imports, including semiconductor equipment (+11.4%), declined by 3.2% to $40.2 billion.

The trade balance for May recorded a surplus of $6.94 billion, an increase of $2.05 billion compared to the same month last year. The cumulative trade surplus for January to May this year reached $19 billion, up $4.2 billion year-on-year.