South Korea's export growth stalls as US tariffs sap demand

South Korea's export growth stalled in April in a worrisome sign for the trade-driven economy as officials scramble to cope with US President Donald Trump's sweeping tariff campaign.

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The value of shipments adjusted for working-day differences slipped 0.7 per cent from a year earlier, according to data released on May 1 by the Customs office, in a result that gives a closer indication of the trend than the overall monthly figure.

Exports unadjusted for working days expanded by 3.7 per cent in April. While that was stronger than economists' consensus estimate of a 2 per cent decline, the adjusted figure points to underlying weakness.

Overall imports decreased by 2.7 per cent, resulting in a trade surplus of US$4.8 billion (S$6.28 billion).

May 1's data highlights the risks to the economy if the trade war initiated by Mr Trump persists. A 25 per cent levy on US imports of steel and aluminium started in March, with a similar tax on autos and a baseline 10 per cent tariff on all goods kicking in from April.

Mr Trump eased the auto duties this week, but the 10 per cent universal levy is still scheduled to revert to 25 per cent for South Korea after a three-month grace period ends.