SEOUL (Reuters) -South Korea’s exports rose for the second straight month in July, beating market expectations on strong chip demand, trade data showed on Friday.
Exports from Asia’s fourth-largest economy, an early bellwether for global trade, rose 5.9% from the same month last year to $60.82 billion, stronger than the 4.3% increase in June and a 4.6% forecast for July in a Reuters poll of economists.
In July, there were signs of front-loading ahead of an August 1 deadline for higher U.S. tariffs, economists said.
President Donald Trump signed an executive order on Thursday imposing reciprocal tariffs ranging from 10% to 41% on U.S. imports from dozens of countries and foreign locations.
With South Korea, Trump signed a trade deal on Wednesday lowering tariffs to 15% from a threatened 25%, which officials, companies and economists cheered for reducing uncertainty over the trade environment.
Exports of semiconductors jumped 39.3% in July, the biggest annual increase since October 2024, while cars rose 8.8% on robust demand in non-U.S. markets. Ship exports surged 107.6%.
By destination, shipments to the U.S. rose 1.4%, as growing technology demand offset the impact of Trump’s tariffs on steel and auto parts. Exports to China fell 3.0%, while those to the European Union rose 8.7%.
Imports rose 0.7% in July to $54.21 billion, compared with a gain of 4.3% in June and 2.0% expected by economists.
The monthly trade balance stood at a surplus of $6.61 billion, narrower than the previous month’s $9.08 billion, which was the biggest since September 2018.
(Reporting by Jihoon Lee; Editing by Himani Sarkar and Jamie Freed)
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