South Korea's May export volume contracted as uncertainty over Trump's trade policies intensified

South Korea's export volume contracted in May, highlighting the increasingly severe challenges faced by this trade-dependent economy—weak global demand and the growing uncertainty brought about by Trump's large-scale tariff policies. Data released by South Korea's customs on Sunday showed that exports fell by 1.3% year-on-year, a smaller decline than the 2.4% drop predicted by economists in a survey. Overall imports decreased by 5.3%, leading to an expansion of the trade surplus to $6.9 billion. As exports decline, South Korea is preparing to cope with the full impact of U.S. tariffs. In April, Trump imposed a comprehensive 25% tariff on South Korean export goods, although this rate was later temporarily reduced to 10% for a period of 90 days. He has also recently threatened to expand the tariff scope to include Samsung Electronics' mobile products. Data released on Sunday showed that automobile exports fell by 4.4% year-on-year, while semiconductor exports grew by 21.2%. Chips and automobiles are South Korea's largest export pillars. The South Korean Ministry of Trade stated that exports to the U.S. fell by 8.1%. The overall economy of South Korea remains fragile. The Bank of Korea lowered the benchmark interest rate on Thursday to support the economy and nearly halved its economic growth forecast for this year due to concerns over trade uncertainty and weak domestic consumption