The United States plans to impose 25 percent reciprocal tariffs on a broad range of South Korean imports starting next week, but spared automobiles, semiconductors and steel products from the measure.
The exemption, however, does not necessarily signal relief for these core sectors of South Korea's export-driven economy, as they are already subject to, or are expected to soon face, separate sector-specific tariffs under US President Donald Trump's "America First" trade policy.
According to data from the Korea International Trade Association, South Korea's exports to the US totaled $127.8 billion in 2024, up 10.4 percent from the previous year, marking the highest annual tally on record.
Of the total, automobile exports accounted for $34.7 billion, or 27.2 percent.
Semiconductors and memory chips, including DRAM modules, reached $8.2 billion, representing 6.4 percent of the total.
Steel exports were valued at $2.9 billion, or approximately 2.3 percent. According to the US International Trade Administration, South Korea was the fourth-largest steel exporter to the US in 2024, supplying 9 percent of America's total steel imports.
When combined, the three sectors made up approximately 36 percent of South Korea's total exports to the US last year, underscoring their weight in bilateral trade.
While the exemptions may help avoid additional damage to South Korea's top export categories in the short term, industry observers say existing or expected tariffs in these sectors will still pose significant challenges to export growth.
The newly imposed reciprocal tariffs are expected to affect a range of other industrial and consumer goods.
According to KITA's 2024 export data, affected items should include batteries and petroleum products, which accounted for $3.9 billion and $5.1 billion in US-bound exports, respectively, among others.
The Ministry of Trade, Industry and Energy was set to hold a meeting with industry representatives later in the day in Seoul to assess the scope of the impact and explore possible response measures. (Yonhap)
