Korea’s U.S. surplus grows despite tariff pressure

South Korea’s trade surplus with the United States edged up slightly in the first quarter of this year, despite aggressive tariff policies by U.S. President Donald Trump. As the surplus — long criticized by Washington as “unfair” — has not significantly declined, some observers worry it could pose a challenge in the high-level “2+2” trade talks scheduled this week between the two countries' finance and trade officials.

According to the Korea International Trade Association, South Korea posted a $13.38 billion trade surplus with the U.S. in the first quarter, up slightly from $13.22 billion a year earlier. Last year, the annual trade surplus reached a record $55.63 billion.

However, escalating trade tensions and tariff-related uncertainty caused South Korean exports to the U.S. to decline by 2 percent year-on-year. Exports of automobiles — one of South Korea’s key industries — dropped 11.2 percent. Other major categories also fell sharply, including machinery (-50.9 percent), construction equipment (-29.4 percent), and steel plates (-26.5 percent).

Despite the fall in exports, South Korea maintained a trade surplus because imports from the U.S. declined even more steeply. Analysts say American importers likely increased orders in advance of potential high tariffs, which helped prop up South Korea’s surplus.

With in-person talks with U.S. officials set to begin this week, some analysts say the stable surplus level could weaken Seoul’s position. However, the South Korean government expects that the full effects of Washington’s tariff policy will be felt more clearly in the second quarter.


세종=송혜미 기자 1am@donga.com