Why Did South Korea's Food Exports to the U.S. Decline in July?
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Synopsis
In an unexpected turn, South Korea's food exports to the U.S. fell for the first time in nearly two years due to Washington's new tariffs. What does this mean for the future of South Korean agricultural trade? Discover the implications of these changes on the economy and local businesses.
Key Takeaways
- Food exports from South Korea to the U.S. fell by 6.7% in July.
- Tariffs imposed by Washington significantly impacted these exports.
- Exports of instant noodles and snacks saw steep declines.
- Cumulative exports grew by 21.3% in the first seven months of the year.
- The South Korean government is taking proactive measures to support exporters.
Seoul, Aug 20 (NationPress) The food exports from South Korea to the United States experienced their first annual drop in approximately two years during July, primarily due to Washington's extensive tariff policies, according to data released on Wednesday.
Last month, the nation exported US$139 million worth of agricultural products and food items to the U.S., reflecting a 6.7 percent decrease compared to the same month in the previous year, as reported by the Korea Trade Statistics Promotion Institute.
This marks the first decline since May 2023 in South Korea’s food exports to the U.S., as per Yonhap news agency.
Breaking down the exports, shipments of instant noodles, or “ramyeon” in Korean, one of the vital export products, fell by 17.8 percent year-on-year to $14 million.
Exports of snacks saw a more significant decline of 25.9 percent, totaling $20 million7.2 percent and 13.4 percent, respectively.
For the period from January to July, cumulative exports to the U.S. increased by 21.3 percent compared to the same timeframe last year. However, this growth rate has sharply declined from a 27 percent increase observed in the January-June period.
Industry experts have partially attributed this slowdown to companies stockpiling goods ahead of the tariff implementation deadline set by the Trump administration, which announced a 15 percent tariff on all South Korean goods starting August 7.
This panic buying was particularly evident in instant ramyeon, which saw shipments to the U.S. surge by 58.7 percent year-on-year in June.
Market analysts predict that food exports may drop further as U.S. consumers begin to cut their spending due to a bleak economic outlook.
“Local businesses operating in the U.S. are feeling the pinch from a downturn in consumer expenditure,” stated Kang Eun-ji, an analyst at Korea Investment & Securities Co., pointing out that sales of major food corporations, such as CJ CheilJedang Corp., fell in the second quarter.
In response to the situation, Agriculture Minister Song Mi-ryung is set to hold a meeting later on Wednesday to discuss strategies to enhance food exports.
This meeting, which will be the third of its kind, aims to outline the government's support initiatives for export companies while collecting feedback from relevant firms and agencies, according to the ministry.
Point of View
It's clear that the dynamics of international trade are constantly shifting. South Korea's recent decline in food exports to the U.S. underscores the challenges posed by external factors like tariffs and consumer behavior. While this dip is concerning, proactive meetings and government support may help mitigate the impact on local businesses. As always, the nation must adapt to these changes to ensure the stability of its agricultural sector.
NationPress
22/11/2025
Frequently Asked Questions
What caused the decline in South Korea's food exports to the U.S.?
The decline was primarily due to Washington's new tariff policies, specifically a 15 percent tariff imposed on South Korean goods starting August 7.
Which food items saw the biggest decline in exports?
Instant noodles and snacks experienced significant declines, with instant noodles dropping by 17.8% and snacks falling by 25.9%.
How much did cumulative exports to the U.S. grow from January to July?
Cumulative exports increased by 21.3% during the January to July period compared to the same timeframe the previous year.
What measures is the South Korean government taking to support food exporters?
Agriculture Minister Song Mi-ryung is organizing meetings to discuss strategies and gather feedback to enhance support for export companies.
What impact might the economic outlook in the U.S. have on South Korean exports?
As U.S. consumers reduce their spending due to a grim economic outlook, South Korean food exports may face additional challenges.
