Impact of US Tariffs Intensifies... April Exports to US Down 6.8%, Surplus Decreases by $900 Million

Ministry of Trade, Industry and Energy Announces April Export-Import Trends

Total Exports $58.2 Billion, Surplus $4.8 Billion

April exports to the United States decreased by 6.8% year-on-year to $10.6 billion. The trade surplus with the US also decreased by $900 million to $4.5 billion. The impact of US-imposed tariffs is gradually becoming apparent.

The Ministry of Trade, Industry and Energy announced these details in the January report on April export-import trends. April exports increased by 3.7% year-on-year to $58.21 billion, while imports amounted to $53.32 billion, resulting in an overall trade surplus of $4.88 billion.

In April, exports of 7 out of the 15 major export items increased. Semiconductor exports, the largest export item, recorded $11.7 billion (+17.2%) in April, the highest ever for the month, as the fixed price of DDR4 8Gb rebounded for the first time in 12 months since April 2024, and high-value memory exports like HBM continued to perform well. Wireless communication device exports also increased by 26.5% to $1.5 billion, driven by smartphone exports ($400 million, +61.1%), marking a three-month consecutive increase.

Bio-health exports saw a significant increase in biopharmaceutical exports ($900 million, +21.8%), achieving a record high for April at $1.4 billion (+14.6%). Steel exports increased by 5.4% to $3 billion, turning positive for the first time in four months, and secondary battery exports broke a 16-month negative streak since December '23, increasing by 13.7% to $700 million. Ship exports also increased by 17.3% to $2 billion, marking a two-month consecutive increase.

Pure electric vehicles saw a slight decrease, but hybrid vehicles continued a 14-month growth trend. Auto parts exports increased by 3.5% to $2 billion, turning positive for the first time this year.

Beyond the 15 major export items, the global preference for K-food and K-beauty led to record high exports of agricultural and fishery products ($1.1 billion, +8.6%) and cosmetics ($1 billion, +20.8%) for April. Electrical equipment exports also reached a record high for the period at $1.4 billion (+14.9%), driven by transformers and cables.

Regionally, exports increased in 7 out of the 9 major markets.

Exports to China increased by 3.9% to $10.9 billion, as semiconductor exports rebounded and wireless communication device exports saw double-digit growth, reversing the negative trend seen earlier this year.

ASEAN exports increased by 4.5% to $9.4 billion due to strong semiconductor and steel exports, while EU exports reached a record high for the period at $6.7 billion (+18.4%) with double-digit growth in automobile and bio-health exports.

Exports to India reached a record high for April at $1.7 billion (+8.8%) with increases in semiconductor, general machinery, and steel exports, while exports to Latin America turned positive at $2.6 billion (+3.9%). Middle East exports increased by 1.6% to $1.7 billion for three consecutive months, and exports to CIS increased by 37.2% to $1.2 billion for two consecutive months.

However, exports to the US decreased by 6.8% year-on-year to $10.6 billion, despite strong exports of petroleum products, secondary batteries, and wireless communication devices, as the two major export items, automobiles and general machinery, declined. The trade surplus with the US also decreased by $900 million to $4.5 billion.

April imports decreased by 2.7% year-on-year to $53.32 billion, influenced by a significant reduction in crude oil (-19.9%) and gas (-11.4%) import costs due to stabilized energy import prices.

Minister of Trade, Industry and Energy Ahn Duk-geun stated, "Despite the decrease in exports to the US in April, exports to major countries increased, maintaining a positive trend in overall exports for three consecutive months," and evaluated that "our export competitiveness remains robust, as evidenced by record high export performances in April for not only key items like semiconductors and bio-health but also cosmetics, agricultural and fishery products, and electrical equipment."

There is also considerable concern regarding the US tariff measures. Minister Ahn stated, "The government will concentrate all available resources to minimize the impact on our companies and maintain export competitiveness amid the uncertainties in the export environment, such as US tariff measures."

Reporters Kim Dae-hoon/Kim Ri-an daepun@hankyung.com