Why Did South Korea's Food Exports to the US Drop in July?
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Synopsis
In a surprising turn of events, South Korea's food exports to the U.S. have experienced their first decline in nearly two years this July, primarily due to new tariffs imposed by Washington. Discover how this shift impacts the agricultural sector and what measures are being taken to address the challenges ahead.
Key Takeaways
- South Korea's food exports to the U.S. dropped for the first time in nearly two years.
- Exports amounted to US$139 million, a 6.7 percent decrease from last year.
- Key products like ramyeon and snacks saw significant declines.
- Government meetings are planned to support exporters.
- Future exports may be threatened by ongoing economic challenges.
Seoul, Aug 20 (NationPress) South Korea's food exports to the United States experienced their first year-on-year decline in nearly two years this July, primarily due to Washington's extensive tariff measures, as reported on Wednesday. The nation exported US$139 million worth of agricultural products and food items to the U.S. last month, reflecting a 6.7 percent decrease compared to the same month last year, according to data from the Korea Trade Statistics Promotion Institute.
This marks the first year-on-year drop in food exports to the U.S. since May 2023, as highlighted by the Yonhap news agency.
In terms of specific items, the export of instant noodles, known as "ramyeon" in Korean and a significant export product, saw a decline of 17.8 percent year-on-year, totaling $14 million.
Snack exports fell even more sharply by 25.9 percent to $20 million, while sauces and ginseng exports decreased by 7.2 percent and 13.4 percent year-on-year, respectively.
Cumulatively, exports to the U.S. from January to July grew by 21.3 percent compared to the same period last year. However, this growth rate has significantly slowed from a 27 percent year-on-year growth observed in the January-June timeframe.
Industry experts have partly attributed this slowdown to companies stocking up ahead of the tariff deadline set by the Trump administration, which announced a 15 percent tariff on all South Korean goods effective August 7.
Panic buying was particularly evident in instant ramyeon, whose shipments surged by 58.7 percent year-on-year in June.
Market analysts suggest that food exports may further decline as U.S. consumers are tightening their spending amidst a challenging economic outlook. "Local companies in the U.S. are feeling the impact of reduced consumer spending," stated analyst Kang Eun-ji from Korea Investment & Securities Co., noting that U.S. sales for major food firms like CJ CheilJedang Corp. fell in the second quarter.
In response to these challenges, Agriculture Minister Song Mi-ryung is scheduled to hold a meeting later today, aimed at enhancing food exports. This meeting, which will be the third of its kind, will focus on outlining government support measures for exporting companies and collecting feedback from businesses and relevant agencies, the ministry confirmed.
Point of View
It is crucial to recognize the impact of fluctuating trade dynamics on our local farmers and exporters. While the decrease in food exports to the U.S. poses a challenge, it also serves as a reminder of the need for strategic planning and adaptability in our agricultural sector. The government’s proactive approach to support exporters is commendable and highlights the importance of collaboration between businesses and policy makers in these uncertain times.
NationPress
08/10/2025
Frequently Asked Questions
What caused the decline in South Korea's food exports to the U.S.?
The decline was primarily caused by new tariffs imposed by the U.S. government, which led to a decrease in consumer spending and panic buying ahead of the tariff deadline.
How much did South Korea's food exports decrease?
South Korea's food exports to the U.S. decreased by 6.7 percent in July compared to the same month last year.
What items saw the largest decrease in exports?
Instant noodles (ramyeon) and snacks saw significant declines, with instant noodles down by 17.8 percent and snacks down by 25.9 percent.
What steps is the government taking to address the issue?
Agriculture Minister Song Mi-ryung is convening a meeting to discuss measures to support food exporters and gather feedback from the industry.
What is the future outlook for South Korean food exports?
Market analysts predict that food exports may continue to decline due to reduced consumer spending in the U.S. amid economic challenges.
