SEOUL: South Korea’s early exports data showed that shipments overseas have held up so far in August despite sweeping US tariffs that continue to weigh on global commerce.
The value of shipments increased 7.6% from a year earlier in the first 20 days of August, according to data released yesterday by the customs office.
That compared with a 5.8% increase in the full month of July. Imports edged up 0.4%, resulting in a trade surplus of US$833mil. Working-day adjusted exports also climbed 7.6% for the first 20 days of the month.
The latest data come after a last-minute trade deal that capped US tariffs on imports of South Korean goods at 15% – a higher rate than the 10% implemented from April, but below the 25% level that President Donald Trump had threatened to impose.
Outbound shipments so far have likely been supported by front-loading ahead of the Aug 1 tariff deal deadline.
Also, manufacturers including Samsung Electronics Co have benefited from Trump’s decision to put smartphones, laptops and other consumer technology products on an exclusion list.
Supply-chain relationships with companies such as Apple Inc have also helped.
While the pact eased fears over the potential worst-case scenario, policymakers warned that growing global protectionism and lingering tensions with Washington could weigh on the outlook.
Auto exports face uncertainty, as the 25% US tariff on South Korean cars remained in place until Trump signs an executive order to align it with the 15% universal rate. — Bloomberg
