Trump Tariffs Lead to Slump in April Production, Consumption, and Investment [3-Minute Brief]

[At a Glance]
① April sees 'triple decline' in production, consumption, and investment after three months
② National tax revenue reaches 142.2 trillion won by April... Up 16.6 trillion won year-on-year thanks to strong corporate tax
③ U.S. appeals court upholds effectiveness of Trump tariffs

MARKET INDEX : Year to date

○Trump's tariff and tax cut policies... Market volatility increases

○Profit-taking in Tesla and Nvidia due to 'overvaluation concerns'

○Sharp decline in the won-dollar exchange rate raises concerns about foreign exchange losses... Selling pressure intensifies

Top3 NEWS

■ Production, consumption, and investment all decline in April... Is the economy still alive? (Comprehensive)

○Statistics Korea announces 'Industrial Activity Trends for April 2025'
○Both the coincident composite index and the leading composite index continue to rise
○Slump in the construction sector persists over the long term

■ National tax revenue from January to April reaches 142.2 trillion won... Increased by 16.6 trillion won thanks to corporate tax

○Cumulative corporate tax for April: 35.8 trillion won
○Income tax increases by 9.8% to 48.8 trillion won
○Economic slowdown and U.S. tariffs make future tax revenue outlook uncertain

■ Trump's tariffs make a comeback within a day... White House says "many tariff options available" (Comprehensive)

○Court overturns 'IEEPA tariff violation' ruling in just one day
○Tariff strategist Navarro says "many other measures available"
○"U.S. bargaining power weakened" vs "Negotiation is the only answer in the end"

Graphic News: '100 Billion-Won Tariff Bomb' on K-Ramen... Unstable U.S. policy keeps exporters on edge

○25% reciprocal tariff imposed... Direct hit to exporters

○Korea ranks No. 1 in U.S. market share at 44.7%

○If tariffs are raised, local retail prices are bound to rise

the Chart: Hot debate over introduction of won-based stablecoins... Tether challenger vs. acceleration controversy

○Dollar stablecoin 'Tether' rapidly gaining ground in the payments market

○Expanding beyond virtual asset trading to online/offline payments and lending

○"Blocking domestic circulation of dollar coins should be a top policy concern"

Today's Key Schedule

○Domestic

Kospi: Kistron to be listed, final public offering price set at 3,600 won

○Overseas

08:50 Japan Capital Expenditure (YoY) (Q1)

16:15 Spain Manufacturing PMI (May)

16:45 Italy Manufacturing PMI (May)

16:55 Germany Manufacturing PMI (May)

17:00 Eurozone Manufacturing PMI (May)

22:45 U.S. Manufacturing PMI (May)

23:00 U.S. ISM Manufacturing PMI (May)

◇Lunch & Evening Weather

○Lowest temperature: 18℃ (▲2℃) ｜Highest temperature: 23℃ (▼1℃)
○Chance of precipitation: 30% in the morning | 30% in the afternoon
○Fine dust: Moderate in the morning | Moderate in the afternoon

All you need is 3 minutes: essential, value-for-time economic news. Published daily at 8:00 AM.