Korean food exports to US shrink for first time in 26 months amid tariffs

A customer browsing instant noodles at a supermarket Yonhap — Instant noodles at a supermarket/ Yonhap

SEOUL, August 20 (AJP) - South Korea’s agricultural and food shipments to the United States declined in July for the first time in more than two years, as new American tariffs began weighing on demand.

Exports fell 6.7 percent from a year earlier to $139 million, data from the Korea Trade Statistics Promotion Institute showed on Wednesday. It was the first monthly contraction since May 2023 and followed a stretch of rapid growth that had lifted first-half shipments by 27 percent.

The downturn was led by staples of the Korean food boom in American supermarkets. Instant noodle exports dropped 17.8 percent to $14 million, after soaring more than 40 percent in the first half. Snack shipments tumbled 25.9 percent to $20 million, while sauces fell 7.2 percent to $7 million.

Industry sources said the reversal partly reflected importers rushing to front-load orders ahead of a 15 percent blanket tariff imposed by the Trump administration.

Samyang Foods, whose fiery Buldak noodles have become a best seller in the United States, said it had accelerated exports through June to build inventory before duties took effect.

The slowdown also coincides with weakening U.S. consumer sentiment.

More than half of Americans cite grocery bills as their biggest source of financial strain, according to a recent AP-NORC poll. Analysts say Korean food giants including CJ CheilJedang and Nongshim posted sluggish second-quarter results in the American market.

Despite the setback, South Korea’s farm and food exports to the United States totaled $1.07 billion in the January–July period, up 21.3 percent from a year earlier, though the pace of growth has cooled since June. The deceleration poses risks for Seoul’s goal of reaching $14 billion in agricultural exports this year.

The Ministry of Agriculture, Food and Rural Affairs is scheduled to hold its third export strategy meeting this week. Minister Song Mi-ryung is expected to discuss corporate concerns and consider additional support measures to sustain momentum.

Kim Dong-young davekim0807@ajupress.com