The News
South Korea’s economy shrank in the first quarter, as it became an early casualty of Washington’s protectionism.
The year-on-year contraction was the country’s first since late 2020, and though analysts noted domestic political turmoil likely dampened consumption, South Korea’s export-dependent economy left it vulnerable to US President Donald Trump’s fast-changing trade policies.
Officials from Seoul are in Washington today hoping to win some long-term respite: Though the White House has suspended its “Liberation Day” tariffs, South Korea, the fourth largest exporter of steel to the US, is still subject to 25% tariffs on the metal.
Goldman Sachs said it was downbeat on South Korea’s growth prospects, however, “given still elevated uncertainties with US tariff policy.”
