Korean exporters to witness 4.9% decline in exports, if US tariff policy persists
ANI
27 May 2025, 12:09 GMT+10
New Delhi [India] May 27 (ANI): South Korean exporters are expected to see a 4.9 per cent decline in exports during 2025 on a year-on-year basis, if US President Donald Trump goes ahead with his current tariff policies, revealed a new survey released on Monday, reports the Korea Herald.According to the survey, worst hit sector is expected to be companies that produce electronics, which is likely to see a steep decline of 8.3 percent, followed by automobiles and parts with a 7.9 percent drop, petroleum products down at 7.2 percent, general machinery at 6.4 percent, semiconductors at 3.6 percent and steel at 2.8 percent.On the flip side, shipbuilders and biopharmaceuticals are likely to see an upside in their overseas shipments, by 10 per cent and 1 per cent, respectively, overpowering the tariff measures.The survey was conducted by local pollster Mono Research and commissioned by the country's major business lobby, the Federation of Korean Industries, which polled around 150 export-oriented companies among the country's top 1,000 companies by revenue.The survey also revealed that, if the US sticks to its current tariff policies, then Korean companies are likely to see a 6.6 per cent decline in their overall revenue and a 6.3 per cent decline in operating profits, on average. Over 80 per cent of the respondent believe that 'US tariff policies would negatively affect both American and Korean businesses, while 14.7 per cent said the tariffs would hurt Korean companies but benefit their US counterparts.' 'Despite a temporary tariff reduction agreement between the US and China, the uncertainty on tariff policies remains,' said Lee Sang-ho, head of FKI's economic and industrial research department. 'The government must closely monitor tariff-related developments, work to remove nontariff barriers and develop negotiation strategies to minimise damage to Korean firms says the news report by the Korea Herald.Last month, South Korea's automobile exports declined in April year on year, largely due to a sharp drop in shipments to the United States following Washington's imposition of steep tariffs on foreign-made cars. (ANI)
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