BY JIHOON LEE
SEOUL—South Korea’s exports were unexpectedly resilient in April, buoyed by strong demand for semiconductors despite the drag from US tariffs, although there are signs that global trade tensions have started to impact its key auto sector.
The country’s better-than-expected trade performance, however, indicated the hit was not as bad as some had feared, though analysts remained cautious about the outlook for the quarter.
“April’s data was a surprise, but it is unclear if exports will continue to be strong in May, because there might have been some effects of early shipping,” said Park Sang-hyun, an economist at iM Securities.
“Still, there is a possibility that the second quarter could be better than expected, thanks to the pause on tariffs,” Park said, while noting uncertainty over trade negotiations and ongoing conflict between Washington and Beijing.
South Korea is the first major exporting economy to report trade figures each month, providing an early look at the state of global trade since US President Donald Trump announced his sweeping tariff policies.
South Korea’s exports climbed 3.7 percent from a year earlier to $58.21 billion in April. That was faster than a rise of 3.0 percent in March and the biggest percentage gain in four months.
It beat a median 2.0 percent loss projected in a Reuters poll, in which 19 of 22 economists expected exports to fall as Trump’s tariffs start to bite, and even topped the highest forecast of a 0.9 percent rise.
Trump imposed 25 percent tariffs on auto imports in early April, after introducing 25 percent duties on steel imports in early March. He suggested more tariffs on auto parts, semiconductors and biopharmaceutical products, but later offered tariff exemptions on electronic items and measures to soften auto tariffs.
His 10 percent blanket tariffs also took effect in early April, while higher “reciprocal” tariffs, including 25 percent duties on South Korea, are currently paused for 90 days.
The pause has been a relief as countries like South Korea work out bilateral deals to avoid the high tariffs.
South Korea agreed last week to craft a trade package with the United States aimed at eliminating new US tariffs before reciprocal tariffs are reinstated in July, following the first round of trade talks.
In April, shipments to the United States fell 6.8 percent, but those to China rose 3.9 percent – these countries are South Korea’s two biggest export markets with autos and chips comprising the bulk of shipments. Exports to the European Union jumped 18.4 percent to a record high of $6.7 billion.
