Why Did South Korea's Food Exports to the US Decline in July?
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Synopsis
In July, South Korea's food exports to the U.S. faced an unexpected downturn due to new tariffs implemented by the U.S. government. This report delves into the details of the drop and its implications for South Korean businesses and the broader economic landscape.
Key Takeaways
- South Korea's food exports to the U.S. fell 6.7% in July.
- The decline marks the first drop in nearly two years.
- Instant noodles and snacks saw significant export decreases.
- Cumulative exports showed a 21.3% increase for the year-to-date.
- Government meetings are being held to support affected industries.
Seoul, Aug 20 (NationPress) South Korea's food exports to the United States experienced their first year-on-year decline in nearly two years during July, primarily due to Washington's extensive tariff policies, data revealed on Wednesday.
In July, the nation shipped US$139 million worth of agricultural and food products to the U.S., 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 drop since May 2023 in South Korea's food exports to the U.S., as reported by Yonhap news agency.
Examining specific items, exports of instant noodles, known as “ramyeon” in Korean, saw a decline of 17.8 percent year-on-year, totaling $14 million.
Snack exports plummeted even more significantly, by 25.9 percent to $20 million, while exports of sauces and ginseng fell 7.2 percent and 13.4 percent, respectively.
For the January-July period, cumulative exports to the U.S. rose 21.3 percent compared to the same period last year. However, this growth rate has notably slowed from a 27 percent increase seen during the January-June period.
Industry experts attribute this slowdown in part to companies stockpiling goods ahead of the tariff deadline set by the Trump administration, which announced a 15 percent tariff on all South Korean products starting August 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.
Market analysts suggest that food exports may decline further as U.S. consumers cut back on spending amid a bleak economic forecast.
"Local companies operating in the U.S. are feeling the pinch from reduced consumer spending," noted analyst Kang Eun-ji from Korea Investment & Securities Co., highlighting that sales of major food firms, like CJ CheilJedang Corp., fell in the second quarter.
To tackle this challenge, Agriculture Minister Song Mi-ryung plans to hold a meeting later Wednesday to discuss strategies for enhancing food exports.
This meeting, the third of its kind, aims to outline governmental support for export firms and gather insights from businesses and relevant agencies, according to the ministry.
Point of View
I see the current decline in South Korea's food exports to the U.S. as a significant challenge that underscores the fragility of international trade relations. The impact of tariffs on local businesses cannot be underestimated, and it is essential for the government to respond effectively to safeguard these vital export channels.
NationPress
09/01/2026
Frequently Asked Questions
What caused the decline in South Korea's food exports to the U.S.?
The decline was primarily due to new tariffs imposed by the U.S. government, impacting the prices and demand for South Korean food products.
Which specific food items saw a decline in exports?
Significant declines were noted in instant noodles, snacks, sauces, and ginseng exports.
What was the overall trend in food exports during the January-July period?
Cumulative exports to the U.S. increased by 21.3 percent during this period, though the growth rate has slowed.
How are South Korean companies responding to the new tariffs?
Many companies are stockpiling goods in anticipation of the tariffs, which has led to increased shipments prior to the deadline.
What measures are being taken to support food exports?
The Agriculture Minister is convening meetings to outline government support for export companies and gather feedback to address the situation.
