South Korea’s export outlook weakens in the third quarter as global and political challenges grow. Rising tariffs under U.S. President Donald Trump and a sluggish world economy are making things harder for Korean exporters. According to a report released Monday by the Korea International Trade Association (KITA), South Korea’s export outlook weakens due to persistent U.S. trade pressure. The survey included 1,066 companies and measured their export business sentiment.
The index for July to September rose to 96.3 from 84.1 in the previous quarter. However, it remains below the neutral 100 mark for a third straight quarter. This score indicates more firms expect conditions to worsen.
The main concerns involve U.S. tariffs and global market instability. Trump’s refusal to ease tariff policies during a Sunday interview added further uncertainty. Observers now expect industry sentiment to decline even more.
KITA explained that the trade environment remains difficult due to ongoing global tensions. Volatile foreign exchange rates also contribute to exporters’ concerns. Yang Ji-won, a senior KITA researcher, emphasized the urgent need for market diversification. “Global uncertainties have expanded since Trump began his second term,” Yang said. He added that semiconductors, appliances, and autos are under increasing pressure.
Among 15 industries surveyed, home appliances had the lowest confidence. Its index dropped to 52.7 for the third straight quarter. This decline follows Trump’s expansion of 50 percent steel tariffs to cover many household items.
The auto industry is also under strain. After Trump imposed 25 percent tariffs on imported car parts in April, their confidence index dropped to 56.0. However, not all sectors reported negative trends. Semiconductors showed strength with a score of 147.1, driven by high demand and AI chip growth. Shipbuilding also did well, scoring 135.5, helped by strong demand for LNG carriers.
South Korea’s export strength weakens, even as Seoul pushes for tariff exemptions. The U.S. deadline for extending reduced tariff rates ends July 9. If no deal is reached, Korean goods will face 25 percent tariffs, up from 10 percent. Trade envoy Yeo Han-koo returned from Washington on Sunday after key talks. This marked the first high-level meeting since the Lee Jae Myung government took office on June 4.
Yeo met U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. He also spoke with lawmakers and influencers to support Korea’s trade stance. He admitted progress has been slower than hoped but said talks remain ongoing. “Negotiations are fluid,” Yeo said. “We will work toward the best possible result.”
Yeo also confirmed U.S. interest in Korea joining the Alaska LNG project. Still, Trump said on Fox News that he plans to move forward with higher tariffs. He intends to send formal notices soon. Companies must now prepare for shifting trade rules. South Korea’s export outlook weakens, but efforts to regain momentum are underway.
