Bank of Korea sees auto, steel, chip exports falling when tariffs hit
SEOUL :South Korea's exports of automobiles, steel and semiconductors are expected to fall as the impact of U.S. President Donald Trump's tariffs take effect later this year, the central bank said on Thursday.
Weaker car exports will drag down South Korea's exports by 0.6 per cent, and U.S.-bound exports by 4.0 per cent, posing the biggest risk, the Bank of Korea projected in a report, adding automakers so far have responded to 25 per cent U.S. tariffs with existing stocks.
Steel products are also estimated to lower the country's exports by 0.3 per cent, with a decline of 1.4 per cent in U.S.-bound shipments, as 25 per cent tariffs on the sector start to weigh from the third quarter after a time lag in shipments, the central bank said.
The BOK saw semiconductors lowering the country's exports by 0.2 per cent, assuming 10 per cent U.S. duties on the sector, although there have so far been positive effects from advance orders ahead of Trump's planned tariffs.
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