Why Did South Korea's Food Exports to the US Decline in July?
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Synopsis
South Korea's food exports to the U.S. have seen their first decline in two years, primarily due to new tariffs. With significant drops in key products like instant noodles and snacks, industry experts warn of further declines as U.S. consumer spending slows. Agriculture officials are responding with a meeting to support exporters in this challenging climate.
Key Takeaways
- First decline in food exports to the U.S. in two years.
- Exports fell 6.7 percent in July year-on-year.
- Instant noodles and snacks saw significant drops.
- Government plans to support exporters amid economic challenges.
- Future outlook suggests potential further declines.
Seoul, Aug 20 (NationPress) South Korea's food exports to the United States experienced the first year-on-year decline in nearly two years during July, primarily due to Washington's extensive tariff policies, as revealed by data on Wednesday.
The nation exported US$139 million worth of agricultural goods and food products to the U.S. last month, marking a 6.7 percent drop compared to the same month last year, according to the Korea Trade Statistics Promotion Institute.
This decline signifies the first time since May 2023 that South Korea's food exports to the U.S. have fallen year-over-year, as reported by Yonhap news agency.
In terms of specific items, shipments of instant noodles, known as 'ramyeon' in Korean, one of the key export products, saw a 17.8 percent decrease, totaling $14 million.
Export figures for snacks dropped even more significantly, declining 25.9 percent to $20 million, while exports of sauces and ginseng fell by 7.2 percent and 13.4 percent year-on-year, respectively.
Cumulatively, exports to the U.S. for the January-July period rose 21.3 percent compared to the same timeframe last year. However, this growth rate has sharply decreased from a 27 percent increase during the January-June period.
Industry experts attribute this slowdown partly to companies stockpiling goods ahead of the tariff deadline imposed by the Trump administration, which announced a 15 percent tariff on all South Korean goods effective Aug. 7.
This panic buying was particularly evident in instant ramyeon, whose shipments to the U.S. surged 58.7 percent year-on-year in June.
Food exports may continue to decline as U.S. consumers are cutting back on spending amid a challenging economic outlook, according to market analysts.
“Local firms operating in the U.S. are feeling the impact of reduced consumer spending,” stated Kang Eun-ji, an analyst from Korea Investment & Securities Co., noting that U.S. sales for major food companies like CJ CheilJedang Corp. declined in the second quarter.
In response to this situation, Agriculture Minister Song Mi-ryung planned to convene a meeting later on Wednesday to discuss strategies for boosting food exports.
This will be the third meeting of its kind, where the minister will present government support measures for export companies and gather feedback from businesses and related agencies, according to the ministry.
Point of View
It is crucial to highlight that while the decline in South Korea's food exports to the U.S. is concerning, it reflects broader economic trends influenced by policy changes. The government's proactive steps to support exporters demonstrate a commitment to navigating these challenges. Maintaining a balanced perspective is essential as we monitor ongoing developments in this sector.
NationPress
08/10/2025
Frequently Asked Questions
What caused the decline in South Korea's food exports to the US?
The decline was primarily due to new tariffs imposed by the U.S., which affected the pricing and demand for South Korean food products.
What percentage did the food exports drop by?
Food exports dropped by 6.7 percent in July compared to the same month last year.
Which products saw the most significant declines?
Instant noodles and snacks experienced the most significant declines, with shipments dropping by 17.8 percent and 25.9 percent, respectively.
How are industry officials responding to the decline?
Industry officials are highlighting the need for government support, and Agriculture Minister Song Mi-ryung is convening meetings to discuss strategies to boost food exports.
What are the future outlooks for South Korean food exports?
Market analysts suggest that food exports may continue to decline due to reduced consumer spending in the U.S. amid economic challenges.
