US Tariffs on Korean Exports Surge, Hitting $4.6 Trillion in Q2
WASHINGTON – Tariffs imposed by the United States on goods from South Korea skyrocketed in the second quarter, reaching 4.6 trillion won – a dramatic increase described as a “47x explosion” by analysts. The surge underscores growing economic friction between the two nations adn places renewed pressure on Korean exporters already navigating a complex global trade landscape.
While the initial burden of tariffs typically falls on importers, Korean export companies are increasingly absorbing a critically important portion of the costs through negotiated price adjustments or passing them onto consumers. Recent data indicates a shift in who pays, with US consumers now bearing a larger share. According to a Goldman Sachs report from August, US importers initially covered 64% of tariffs, consumers 22%, and Korean exporters 14%. though, by October, those percentages shifted to 67% for consumers, 25% for exporters, and only 8% for importers.
The Korea-US tariff agreement is now under scrutiny as a potential avenue to alleviate the burden on Korean businesses.Advocates propose lowering tariff rates on automobiles and auto parts to 15% and securing favorable terms for key exports like semiconductors and pharmaceuticals. Kang Seok-gu, head of the Korea Examination Division, estimates that even with a 15% mutual tariff, Korean exporters would still shoulder 3.75% of the US export value.
The escalating tariff situation highlights the vulnerability of Korean exports to US trade policy and the need for continued negotiations to mitigate the financial impact on Korean businesses and consumers.
Park Min-sik,Hankook Ilbo reporter,bemyself@hankookilbo.com.
