Trump tariffs drive seven-month U.S. export decline as EU, Asia shipments surge
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South Korea’s automobile export value in September reached a record high for the month, according to data released on the 20th by the Ministry of Trade, Industry and Resources. However, exports to the U.S., the largest market for Korean automobiles, declined for the seventh consecutive month compared to the same period last year, influenced by the “Trump tariffs.”
According to the ministry’s “September 2025 Automotive Industry Trends” report, South Korea’s automobile export value last month increased by 16.8% year-on-year to $6.41 billion. This marked the fourth consecutive month of growth compared to the same month the previous year, setting a new record for September exports.
Cumulative exports from January to September also reached $54.1 billion, the highest for the period in a year. The ministry attributed this growth to increased production days compared to previous years, as this year’s Chuseok holiday was pushed to October, and rising exports to the European Union and Asia.
By region, exports to the U.S., South Korea’s largest automobile market, fell by 7.5% year-on-year to $2.38 billion. Despite increased production days due to the Chuseok holiday, exports failed to avoid a decline.
U.S. exports have been declining for seven consecutive months since April, when the Trump administration imposed 25% tariffs on automobiles and parts. Year-on-year declines in U.S. exports were -10.8% in March, -19.6% in April, -27.1% in May, -16.0% in June, -4.6% in July, -15.2% in August, and -7.5% in September.
Exports to other regions, including the European Union and Asia, offset the decline in U.S. shipments. EU exports in September surged by 52.8% to $960 million, while other European countries saw an 81.2% increase to $720 million. Asia recorded $820 million (+62.3%), and Central and South America reached $310 million (+36.4%).
Exports to the Middle East decreased by 10.1% to $380 million due to reduced shipments to Israel amid the Israel-Iran war.
Eco-friendly vehicle exports, which have risen for nine consecutive months, reached 90,496 units in September, surpassing 90,000 for the first time on a monthly basis. Electric vehicle exports increased by 38.9% to 29,288 units, growing for four consecutive months since turning positive in June after 16 months. Hybrid vehicle exports also rose by 55.7% to 57,824 units.
Domestic automobile sales in September totaled 157,898 units (+20.8%), the highest monthly figure since November 2023. Of these, 83,236 units (+40.5%) were eco-friendly vehicles, with hybrids (51,973 units) and electric vehicles (28,760 units) accounting for the majority.
Domestic automobile production in September increased by 8.9% year-on-year to 334,319 units.
