Sign in Subscribe
Exports

Korea's Food Exports to US Post First Decline in Two Years Amid Tariffs

Strategic Insights

— 1 min read

South Korea's food exports to the United States dropped 6.7% year-on-year in July, marking the first decline in approximately two years, due to Washington's tariff scheme. The decline follows a surge in exports earlier this year, with instant noodles, snacks, sauces, and ginseng experiencing significant declines. Industry officials attribute the slowdown to companies stockpiling goods ahead of a new tariff deadline, while market watchers predict further declines as U.S. consumers reduce spending amid economic uncertainty.

Key Takeaways:

  • Korea's food exports to the US declined 6.7% year-on-year in July, the first such decline in approximately two years, due to Washington's tariff scheme.
  • By item, instant noodles (ramyeon) shipments fell 17.8% on-year to $14 million, while snacks declined by 25.9% to $20 million.
  • Exports of sauces dipped 7.2% on-year, and ginseng shipments decreased 13.4% on-year.
  • Cumulative exports to the US in the January-July period grew 21.3% year-on-year, but the growth rate slowed sharply from a 27% on-year increase in the January-June period.
  • Industry officials attribute the slowdown to companies securing stocks ahead of Washington's tariff deadline, particularly noticeable in instant ramyeon.
  • Local companies operating in the US were unable to avoid the effects of a slowdown in consumer spending, with US sales of major food companies, such as CJ CheilJedang, declining in the second quarter.

Statistics:

  • Korea's food exports to the US totaled $139 million in July, down 6.7% from the same month last year.
  • Shipments of instant noodles (ramyeon) reached $14 million, down 17.8% on-year.
  • Snacks exports decreased to $20 million, a decline of 25.9% on-year.
  • Exports of sauces and ginseng dipped 7.2% and 13.4% on-year, respectively.
  • Cumulative exports to the US in the January-July period grew 21.3% year-on-year.

Sources:

  • Korea Trade Statistics Promotion Institute
  • Korea Investment and Securities
  • Agriculture Ministry of South Korea

Read more