Despite US tariffs hurting trade, South Korea’s exports jumped to their highest level in July ever, driven by robust demand for cars and semiconductors abroad, according to government figures released Friday.
According to the ministry of industry and trade, the nation’s exports in July topped $60 billion, an increase of about 6% from the same month the previous year.
South Korea’s top export, semiconductors, brought in almost $14 billion in July, the biggest ever and about a third more than the previous year.
According to the ministry, the good performance was driven by the increased demand for artificial intelligence (AI) products such high-bandwidth memory (HBM) processors.
Asia’s fourth-largest economy was initially hit with a 25 percent across-the-board tariff by the United States but managed to secure a last-minute agreement for a reduced 15 percent rate.
But 50 percent duties remain in place on exports like steel and aluminium.
Despite declines in steel and auto parts exports due to tariffs, shipments to the United States rose over the past year, driven by increased exports of semiconductors and wireless communication devices.
“The trade and export environment surrounding South Korea was marked by extreme uncertainty in July, as the US prepared to impose new tariffs starting August 1,” Industry and Trade Minister Kim Jung-kwan said in a statement.
“Despite these difficult conditions, South Korean companies made an all-out effort to maintain export momentum, achieving a record-high performance for the month,” Kim added.
“A lot of the uncertainty surrounding our export environment has been removed and it guarantees that Korean exporters can now compete in the US market on equal or more favorable terms,” Kim said of the trade talks with the US.
In a statement on Wednesday, US President Donald Trump stated that South Korean President Lee Jae-myung would come to the White House for bilateral discussions “within the next two weeks.”
At that time, experts anticipate the announcement of additional trade deal specifics.
