SEOUL, May 21, 2025 (BSS/AFP) - South Korea's exports fell 2.4 percent year-on-year in the first 20 days of May, partly due to weak sales to the US after Washington imposed and then partly lifted sweeping tariffs, official data showed Wednesday.

Last month, the country's exports showed unexpected strength, lifted by robust semiconductor demand even as US tariffs weighed on trade.

But early signs suggest that rising trade tensions are beginning to affect South Korea's other key industries -- including automobiles, which have been hit by a 25 percent levy.

South Korea's exports totalled $32 billion from May 1 to 20, down 2.4 percent from the same period last year, according to data from the Korea Customs Service.

Shipments to the United States, Seoul's key ally, fell 14.6 percent year-on-year during the period, while exports to China and the European Union also declined by 7.2 percent and 2.7 percent, respectively.

Asia's fourth-largest economy was hit with a 25 percent across-the-board tariff by the United States -- although it was temporarily reduced to 10 percent for 90 days starting in early April.

But specific 25 percent duties remain in place on key exports such as steel, aluminium and automobiles.

Following a second round of ministerial-level trade talks last week, Seoul is now in working-level technical discussions with Washington, aiming to secure full tariff exemptions by finalising a trade package by early July.

Shipments of semiconductors, South Korea's biggest export, rose 17.3 percent year-on-year, while other key exports, cars and steel, fell by 6.3 percent and 12.1 percent, respectively, during the May 1-20 period.

Experts have suggested the rise in chip exports, including the high-tech ones needed for AI, could be due to stockpiling.

Exports of petroleum products, home appliances and wireless communication devices all dropped, by 24.1 percent, 19.7 percent and 5.9 percent, respectively.

Seoul's finance ministry announced Wednesday that it will deploy an additional 28.6 trillion won (US$20.5 billion) in emergency liquidity and financial aid to support domestic firms impacted by US tariff measures.

"The government is taking a preemptive approach to the impact of tariffs by formulating an all-ministry export strategy," the ministry said in a statement.

It is also "working to fundamentally strengthen the ecosystem of high-tech industries such as semiconductors, AI, and secondary batteries," the ministry added.

South Korea's imports also fell 2.5 percent year-on-year to $32.2 billion in the first 20 days of May, resulting in a trade deficit of $300 million, according to the Korea Customs Service.