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The world is feeling the effects of the Trump administration’s new tariffs, according to preliminary data from South Korea, (The Wall Street Journal, subscription).   
 
What’s going on: The early data from South Korea’s customs office—which comes as South Korean representatives prepare to travel to the U.S. for negotiations later this week—find that “[e]xports from Asia’s fourth-largest economy fell 5.2% from a year earlier in the first 20 days of April” and “[i]mports plunged 12%, leading to a trade deficit.”  

• New tariffs have been in effect on vehicles imported to the U.S. since April 3. 
• In 2024, South Korea shipped approximately $35 billion worth of cars—almost half the country’s total vehicle exports—to the U.S. 

Why it’s important: South Korea is seen as a barometer of the health of international trade, and these early findings “suggest that U.S. tariffs are beginning to hurt international commerce, with their impact now felt in the country and beyond, ING senior economist Min Joo Kang said in a note.”  
 
The details: South Korean car and vehicle part exports for April 1–20 declined 6.5% and 1.7%, respectively, from the same period in 2024, according to data from the customs office.   

• South Korean exports of semiconductors “maintained their growth,” while exports of petrochemicals dipped.  

What’s next: On Thursday, U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer will meet with South Korean Finance Minister Choi Sang-mok and Trade Minister Ahn Duk-geun “to seek a mutually beneficial solution to the tariff issue,” according to South Korea’s trade ministry.