Korean food exports to the United States have started to face difficulties after a long period of growth. New tariff pressures triggered the first monthly decline in more than two years. Moreover, the downturn raised concerns about the long-term outlook for Korean agricultural goods in the US market.
According to trade figures, Korean food exports to America fell 6.7 percent in July, totaling $139 million. The drop ended a steady growth trend that began in mid-2023. Furthermore, the shortfall amounted to about $10 million compared to the same period last year. Industry insiders warned that the decline could continue if tariffs remain high.
Instant noodles, often seen as the backbone of Korean food exports, suffered the sharpest losses. Shipments fell 17.8 percent to $14 million, making them a major factor in the decline. In addition, snack exports plunged 25.9 percent to $20 million. Sauce exports dropped 7.2 percent to $7 million, while ginseng shipments slid 13.4 percent. Consequently, the combined weakness across categories weighed heavily on the overall performance.
Despite this setback, Korean food exports to the US still showed strength over the broader year. From January through July, exports rose 21.3 percent to $1.07 billion. However, the growth rate slowed compared to the 27 percent increase recorded through June. Instant noodles remained a highlight, posting a 40.8 percent surge in the first half of the year. Moreover, noodle exports peaked at $29 million in June, marking nearly 59 percent growth from a year earlier.
Industry officials explained that front-loaded shipments caused much of the recent slowdown. Many exporters rushed to move products ahead of expected tariff hikes. Samyang Foods, which relies on exports rather than US production, confirmed that it concentrated shipments before June to secure inventory. Meanwhile, companies like Nongshim, with American factories, faced less immediate pressure.
However, tariffs remain a significant challenge for Korean food exports. A blanket tariff rate of 15 percent now applies, down from an earlier proposal of 25 percent. Nevertheless, higher costs have already raised retail prices, with additional increases expected. As a result, US distributors may scale back orders, limiting growth opportunities.
Adding to the pressure, weaker US consumer sentiment is affecting demand for imported goods. Persistent inflation continues to weigh on household spending, reducing appetite for premium products. Analysts in Seoul warned that major players like CJ CheilJedang and Nongshim are not immune to these shifts. Consequently, the second half of the year may bring slower momentum.
In conclusion, Korean food exports face both opportunity and challenge in the US market. While long-term demand remains strong, tariffs and weaker consumer spending threaten short-term growth. Moreover, companies must adapt strategies to sustain their competitiveness under new trade conditions.
