South Korea's May export volume showed a contraction, exacerbated by the uncertainty of Trump's trade policies.

In May, South Korea's export volume shrank, highlighting the increasingly severe challenges faced by this trade-dependent economy - global demand is weak, and the uncertainty brought about by Trump's large-scale tariff policies is also increasing. Data released by the South Korean customs on Sunday showed that exports fell by 1.3% year-on-year, a narrower decline than the 2.4% predicted by economists in the survey. Overall imports decreased by 5.3%, leading to a trade surplus expanding to $6.9 billion. At a time of declining exports, South Korea is preparing to deal with the full impact of U.S. tariffs. In April, Trump imposed a 25% comprehensive tariff on South Korean export goods, although the tariff rate was later temporarily reduced to 10% for a period of 90 days. He recently threatened to expand the tariff scope to Samsung's electronic products. Data released on Sunday showed that in May, automobile exports decreased by 4.4% year-on-year, while semiconductor exports grew by 21.2%. Chips and automobiles are South Korea's largest export pillars. According to the South Korean Ministry of Trade, exports to the U.S. declined by 8.1%. South Korea's overall economy remains fragile. The South Korean central bank lowered its benchmark interest rate on Thursday to support the economy, and nearly halved its economic growth forecast for this year, citing concerns about trade uncertainty and weak domestic consumption.