SEOUL (Reuters) -South Korea's export growth slowed more than expected in August, as U.S. shipments posted their sharpest drop since the COVID-19 pandemic on higher tariffs.
Exports from Asia's fourth-largest economy, an early bellwether for global trade, rose 1.3% from the same month last year to $58.40 billion, trade data showed on Monday, weaker than a 3.0% increase tipped in a Reuters poll of economists and compared with growth of 5.9% in July.
In late July, Seoul reached a trade deal with President
Donald Trump, which set U.S. tariffs on imports from the Asian ally at 15%, lower than a threatened 25% but higher than the baseline 10% that had been in place.
The tariffs came into effect on August 7.
Shipments to the U.S. fell 12.0%, the biggest drop since May 2020, dragged down by automobiles, machinery and steel. But exports of semiconductors and wireless communication devices, currently exempt from tariffs, grew.
Exports to China fell 2.9%, but those to Southeast Asia jumped 11.9%. Shipments to Taiwan surged 39.3% on strong chip demand.
Total exports of semiconductors rose 27.1%, while auto and ship exports rose 8.6% and 11.8%, respectively. Petroleum and petrochemical products, however, dropped 4.7% and 18.7% each on price declines.
Imports fell 4.0% in August to $51.86 billion, after rising 0.7% in July. They were also weaker than a 0.1% fall expected by economists.
The monthly trade balance stood at a surplus of $6.51 billion, narrower than the previous month's $6.61 billion.
(Reporting by Jihoon Lee; Editing by Kim Coghill)
