South Korean media: The tariff war hasn't even begun... South Korea's Q1 exports down 2.1% In the face of continued tightening "tariff pressure" from the Trump administration, South Korea's exports in Q1 this year decreased by 2% year-on-year. This marks the first single-quarter year-on-year decline since Q3 2023, six quarters ago. With the "reciprocal tariff" storm triggered by Trump about to officially hit, the exports that once led South Korea's economic growth have already declined, and unease is growing. On the 1st, South Korea's Ministry of Industry, Trade and Resources announced March export data at $58.28 billion (approximately 85.74 trillion won), an increase of 3.1%; the import amount for the same period was $53.3 billion, an increase of 2.3%. However, the total export amount for Q1 (January-March) was only $159.92 billion, a decrease of 2.1% year-on-year. With the "tariff bombs" starting with Trump, including automobiles, auto parts, and reciprocal tariffs, set to hit South Korean exports starting April, South Korea's exports began showing negative growth trends from Q1. The automobile and steel sectors, which have been targeted by Trump's tariffs, have shown signs of weakness since Q1. South Korean automobile exports reached historical highs in 2024, but Q1 export volume was only $17.3 billion, a decrease of 1.3% year-on-year. Expectations that late-stage demand would be realized before the 25% automobile tariff takes effect on April 3 were not met due to temporary demand stagnation for electric vehicles, resulting in negative growth. The U.S. began imposing a 25% tariff on steel on March 12, and overall steel exports in Q1 fell by more than 6% year-on-year. In terms of regions, exports to South Korea's two major markets, China and the U.S., have stalled. Export volumes to China for three consecutive months in Q1 showed negative growth, reaching $28.8 billion, a decrease of 6.7% year-on-year. Chip exports, which previously accounted for over 30% of exports to China, have plummeted and remain mired in a downward trend. Industry insiders commented: "Due to export controls, exports of high-end chips to China are hindered, while low-priced general products are produced locally in China, squeezing out survival space." Meanwhile, exports to the U.S. amounted to $30.3 billion in Q1, a decrease of 1.9% year-on-year. Cho Won, director of the Hyundai Economic Research Institute, stated: "Q1 performance reflects the 'compressed' demand to complete as much advance exports as possible before tariffs are imposed," adding that "after tariffs take effect, it is expected that the decline in exports will exceed that of Q1." On the same day, the National Assembly Budget Office predicted: "Affected by U.S. tariffs, South Korea's exports will decrease by 3.2% this year." Source: Chosun Ilbo [Image source: //p3-sign.toutiaoimg.com/tos-cn-i-ezhpy3drpa/614f197c2ce74dc5ae0bfab48e02ce82~tplv-obj:600:351.image?_iz=97245&bid=15&from=post&gid=1828262866339840&lk3s=06827d14&x-expires=1751328000&x-signature=MoSjtuS6vLbQqpAYa1qemyGY%2F40%3D] Original article: https://www.toutiao.com/article/1828262866339840/ Disclaimer: This article solely represents the author's views.