The effects of President Trump’s new tariffs are starting to be felt across the world, preliminary South Korean trade data suggest, as Seoul prepares to begin negotiations with Washington.
Exports from Asia’s fourth-largest economy fell 5.2% from a year earlier in the first 20 days of April, according to data from South Korea’s customs office released Monday ahead of full monthly trade figures due next week. Imports plunged 12%, leading to a trade deficit, the preliminary numbers showed.
The early indicators from South Korea, a bellwether for the health of global trade, suggest that U.S. tariffs are beginning to hurt international commerce, with their impact now felt in the country and beyond, ING senior economist Min Joo Kang said in a note.
“We assess that the U.S.-China tariff war is negatively affecting Asia’s export trends in general,” Kang said.
While South Korean exports to Europe continued to grow in the first few weeks of April, those to the U.S. and China declined.
According to the data, South Korean car and auto-part exports for April 1-20 fell 6.5% and 1.7%, respectively, from a year earlier. Trump has imposed tariffs on imported vehicles since early April. Outbound shipments of semiconductors maintained their growth, but those of petrochemicals declined, the data showed.
The Trump administration has announced a 25% levy on all vehicles shipped to the U.S., effective since April 3. A tariff on auto parts is set to kick in soon. The U.S. president has also announced a separate 25% reciprocal tariff on South Korea, though the measure has been paused for 90 days to allow for trade negotiations.
The trade data came as Seoul gears up for high-level tariff negotiations in Washington this week.
Finance Minister Choi Sang-mok and Trade Minister Ahn Duk-geun will meet with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer on Thursday to seek a mutually beneficial solution to the tariff issue, South Korea’s trade ministry said Monday.
Last year, South Korea shipped around $35 billion of cars to the U.S., accounting for nearly half of its total auto exports, according to the ministry.
By Kwanwoo Jun
Kwanwoo.Jun@wsj.com
