Archive · 27 Jul 2025
S. Korea Faces Economic Risks from U.S. Tariffs
South Korea makes a lot of things, like semiconductors and cars, and sells them to other countries.
A big part of their money comes from these exports.
The U.S. is thinking about putting a tax on these exports, which could hurt South Korea's economy because they rely on selling goods to the U.S. The U.S. has warned that if the countries don't reach an agreement, tariffs will be applied.
The countries are talking to try and avoid this.
South Korea's manufacturing sector accounts for 27.6% of its GDP, second highest among OECD nations.
Exports constitute 44.4% of South Korea's GDP, higher than the OECD average.
South Korea's export dependence on the U.S. was 18.8% in 2024.
The U.S. has warned of a 25% reciprocal tariff on South Korea if a deal is not reached by August 1.
Negotiations are ongoing between Seoul and Washington to address potential tariffs.
- Who
- South Korea and the United States.
- What
- South Korea faces potential economic impact from U.S. tariffs due to high manufacturing and export reliance.
- When
- The potential tariffs are expected to take effect if no agreement is reached before August 1.
- Where
- South Korea and the United States.
- Why
- South Korea's reliance on exports and manufacturing makes it vulnerable to U.S. tariff measures.
- Manufacturing Sector in GDP
- 27.6% (2023)
- OECD Average Manufacturing in GDP
- 15.8%
- Export-to-GDP Ratio (South Korea)
- 44.4%
- OECD Average Export-to-GDP Ratio
- 30%
- South Korea's Export Dependence on U.S.
- 18.8% (2024)
- Potential Tariff Rate
- 25%