Seoul, June 1 (IANS) South Korea’s exports dropped 1.3 per cent from a year earlier in May, snapping a three-month winning streak, as outbound shipments to the United States sharply went down amid the U.S. President Donald Trump administration’s sweeping tariff policies, government data showed on Sunday.
Outbound shipments came to US$57.3 billion last month, compared with $58.02 billion a year ago, according to data compiled by the Ministry of Trade, Industry and Energy.
Imports shrank 5.3 percent on-year to $50.3 billion, resulting in a trade surplus of $6.94 billion, reports Yonhap news agency.
In May, shipments to the U.S. slid 8.1 percent from a year ago to $10 billion mainly due to the weak exports of the automotive sector, hit by the Trump administration’s 25 percent tariffs.
Exports to China also decreased 8.4 percent on-year to $10.4 billion on low demand for semiconductors and petrochemical products, while exports to the Association of Southeast Asian Nations (ASEAN) lost 1.3 percent to $10 billion.
On the other hand, exports to the European Union gained 4 percent to $6 billion, up for the third consecutive month, on strong demand for automobiles and semiconductors.
“The U.S. tariffs seem to be affecting the global economy and South Korea’s exports, proven by a decrease in South Korea’s exports to the two biggest markets — the U.S. and China,” Industry Minister Ahn Duk-geun said.
“In particular, the sharp drop in international oil prices to the low $60 range in May led to a more than 20 percent on-year decline in exports of petroleum and petrochemical products, which was another major factor in the overall decrease in outbound shipments,” he added.
By item, chip exports climbed 21.2 percent on-year to $13.8 billion, the highest figure for any May, on robust demand for high-value products, such as high bandwidth memory (HBM).
Outbound shipments of wireless communications products added 3.9 percent to $1.3 billion, driven by a 30 percent jump in smartphone exports.
Exports of computers, including solid state drives, increased 2.3 percent to $1.1 billion, while exports of biohealth products and vessels rose 4.5 percent and 4.3 percent to $1.4 billion and $2.2 billion, respectively.
Auto shipments, however, fell 4.4 percent to $6.2 billion on sluggish exports to the U.S.
Exports of petroleum products slipped 20.9 percent to $3.6 billion, while petrochemical exports dipped 20.8 percent to $3.2 billion.
Agro-fisheries and cosmetics exports, meanwhile, expanded 5.5 percent and 9.3 percent to both hit a record high of $1 billion.
—IANS
na/