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flag South Korea’s exports dropped 10.6% in early September 2025 due to new U.S. tariffs and weakening global demand.

flag South Korea’s exports fell 10.6% year-on-year in early September 2025, signaling economic strain amid new U.S. tariffs that took effect in August. flag The country paid $3.3 billion in U.S. tariffs in the second quarter, a 47-fold increase from the prior quarter, driven by a 25% auto tariff and the loss of preferential trade status. flag Despite gains in semiconductors and automobiles, overall export growth slowed as pre-tariff surges faded and global demand weakened. flag The effective tariff rate reached 10%, the third-highest globally, while diplomatic tensions flared after a U.S. raid detained over 300 South Korean workers. flag Though a trade surplus of $1.89 billion was recorded, the downturn highlights mounting challenges for South Korea’s export-dependent economy.

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