US Tariffs Threaten South Korea Exports; Semiconductor Gains May Be Short-Lived
Creatrip Team
3 months ago
South Korea’s exports, after a record year, may shrink next year as new and expanded US tariffs hit key industries. The Korea Institute for Industrial Economics and Trade forecasts 2026 exports at $697.1 billion, down 0.5% from this year. Autos and steel face immediate pressure—auto tariffs were set at 15% after US‑Korea talks, and steel duties rose from 25% to 50%—while tariff coverage is widening to include derivative products, risking spillover to general machinery and home appliances. Semiconductors, long a top export, are not immune: Washington has signaled possible tariff actions, though Korea secured most‑favored‑nation (MFN) parity in talks and the US share of Korea’s chip exports is relatively small. Recent strong chip shipments may partly reflect front‑loaded orders ahead of possible tariffs, raising concerns of weaker shipments next year once that effect fades. Policymakers are urged to treat 2026 as a year to restore industrial competitiveness amid mounting external risks.
