South Korea’s non-IT exports to the United States declined 12.8% year-on-year from the second quarter of 2025 through the first quarter of 2026 following the introduction of several U.S. tariff measures, according to a report released Friday by the Bank of Korea (BOK).
The report said the decline mainly affected products subject to U.S. import duties, including the 10% reciprocal tariffs introduced on several trading partners. Despite the drop in export volumes, South Korea’s overall share of the U.S. market for these products saw only a modest decrease of 0.4 percentage points during the same period.
In comparison, other major exporting countries experienced larger declines in market share in the United States. China’s share fell by 1.9 percentage points, while Japan and Germany recorded declines of 2.1 percentage points and 2.2 percentage points, respectively.
According to the BOK, South Korea’s relatively smaller decline was partly linked to higher tariff rates imposed on Chinese goods. The report noted that Korean products were able to partially fill gaps in certain U.S. market segments where Chinese exports declined.
The central bank stated that several product categories showed increases in Korea’s market share as U.S. buyers adjusted sourcing patterns. In contrast, the report added that Japanese and German exports showed fewer cases of replacing Chinese goods in the U.S. market.
The tariff measures introduced by the United States throughout 2025 included additional duties on a wide range of imports. Earlier in the year, tariffs on Chinese products were raised in multiple stages, while separate measures imposed a 50% flat tariff on imported steel and aluminum products.
South Korean vehicle exports were also affected after the United States introduced a 25% tariff on imported vehicles. However, the tariff rate on Korean vehicles was later reduced to 15% under a trade agreement between Seoul and Washington.
In April 2025, the United States also implemented reciprocal tariffs of 10% on imports from multiple trading partners, including South Korea. Certain technology-related items such as semiconductors, computers, and other IT products were exempt from the measures.
The report highlighted that South Korea’s export performance in non-IT sectors remained relatively resilient despite the changing trade environment and increased tariff pressures. Analysts noted that shifts in global supply chains and sourcing strategies continued to influence trade flows across major economies.
Earlier this year, a U.S. court ruling blocked the implementation of the reciprocal tariff measures, adding further uncertainty to the future direction of trade policies and global export markets.
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