August 1-10 Export and Import Results
"Sluggish Performance Due to Tariff Impact and Fewer Working Days"
The first export performance following the conclusion of the Korea-US tariff negotiations on July 31 failed to show improvement. From the beginning of this month through the 10th, total exports decreased by more than 4% compared to the same period last year, while exports to the United States dropped by over 14%.
According to the "Export and Import Status for August 1-10" released by the Korea Customs Service on the 11th, exports amounted to $14.7 billion, a 4.3% decrease from the same period last year.
The number of working days from August 1 to 10 was 7, one day fewer than the 8 working days during the same period last year. Taking this into account, the average daily export value was $2.1 billion, representing a 9.3% increase.
An official from the Ministry of Trade, Industry and Energy stated, "Although the conclusion of the Korea-US tariff negotiations has alleviated some uncertainty for export companies, the impact of US tariffs remains, as the US continues to impose a 50% tariff on steel products," adding, "In particular, the fact that there was one fewer working day compared to the same period last year had a significant impact on the decline in exports through the 10th of this month."
The two countries reached a dramatic agreement on tariff negotiations on July 31. Korea pledged a total of $450 billion (about 625 trillion won) in investments and energy purchases from the US, while the US agreed to lower reciprocal tariffs and automobile tariffs from 25% to 15%. Steel was not addressed in this round of tariff negotiations. The US began imposing a 25% tariff on steel and aluminum on March 12 this year, and raised it to 50% on June 4, with these tariffs still in effect. As a result, steel product exports have continued to decline for three consecutive months since May this year (-12.4%) due to the impact of US tariffs. In July, exports also fell by 2.9% compared to the same period last year.
Among the top 10 export items from August 1 to 10, 7 items showed a decline. Compared to the same period last year, exports of semiconductors (12.0%), ships (81.3%), and passenger cars (8.5%) increased, while exports of petroleum products (-19.4%), steel products (-18.8%), wireless communication devices (-4.5%), and home appliances (-42.5%) decreased.
By country, exports to most destinations declined except for Vietnam (4.1%) and Taiwan (47.4%). Exports to the two major markets, China and the US, fell by 10.0% and 14.2%, respectively. In addition, exports to the European Union (EU, -34.8%), India (-22.4%), and Malaysia (-7.7%) also contracted.
Imports from August 1 to 10 amounted to $15.9 billion, a 13.6% decrease from the same period last year. Among the top 10 import items, imports of 9 items decreased, including crude oil (-14.2%), semiconductors (-8.4%), gas (-29.5%), and petroleum products (-1.7%), with only wireless communication devices (8.0%) increasing. Imports from major countries such as Saudi Arabia (2.1%) and Vietnam (9.4%) increased, while imports from China (-11.1%), the US (-18.7%), and the EU (-5.3%) decreased.
The trade balance from the beginning of this month through the 10th recorded a deficit of $1.2 billion. As a result, the cumulative trade surplus from the start of the year through August 10 shrank to $33.279 billion.
An official from the Ministry of Trade, Industry and Energy said, "Since it is still early in the month, it is difficult to forecast the full results for August at this point," adding, "A clearer picture of the monthly export figures will emerge after the 20th of this month."
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