As the U.S. Trump administration has officially announced plans to impose a 25% “Reciprocal Tariff” on Korea starting Friday, August 1, under the pretext of reducing the U.S. trade deficit, Korea’s mold exports are expected to face even greater difficulties amid an already sharp decline in overseas shipments.
The reciprocal tariff will be applied separately from product-specific tariffs imposed under Section 232 of the Trade Expansion Act, such as those on automobiles and steel. The policy aims to address perceived tariff imbalances between countries by imposing equivalent retaliatory tariffs on selected trading partners.
The United States is one of the key export destinations for Korea’s mold industry. As a result of this measure, the industry is expected to suffer from weakened price competitiveness and a substantial decline in export volumes.
Industry concerns have intensified further following the increase in product-specific tariffs on automobiles and steel to 50% in June, as molds may potentially be classified as derivative products subject to additional tariff burdens.
According to an analysis conducted by our Association based on HS Codes, the impact of strengthened U.S. protectionist policies has already become evident in export figures.
Cumulative mold exports to the United States through May this year totaled USD 72.61 million, representing a sharp decline to 59% of the level recorded during the same period last year.
In particular, press molds, which recorded exports of USD 105.72 million during the same period last year, fell dramatically to USD 27.01 million, marking a 74% year-on-year decrease.
Exports of plastic molds declined by 35% year-on-year to USD 36.72 million, while die-casting molds plunged by 88% year-on-year to just USD 1.06 million.
Meanwhile, despite a nearly 50% decrease in exports to the United States as of May, China has expanded exports to Europe and Southeast Asia, resulting in an overall 5% increase in total exports. This trend is viewed not as simple transshipment but as a structural strategic shift driven by aggressive low-price competition.
Korea’s mold industry is already facing mounting difficulties due to the growing penetration of low-priced Chinese molds, and the further intensification of China’s pricing strategy is expected to increase pressure across the entire industry.
The mold industry is currently facing a dual crisis, driven by sluggish demand in downstream industries and intensified low-price competition from China, affecting both the domestic market and exports.
In particular, once the reciprocal tariff is fully implemented in addition to existing product-specific tariffs, exports to the United States are expected to contract further, dealing a significant blow to Korean mold manufacturers with high dependence on the U.S. market. Given the industry’s long lead times from contract signing to shipment, there is also a high likelihood that additional tariffs may apply to contracts concluded prior to the tariff implementation date.
Recognizing the seriousness of the current situation, our Association plans to pursue export support measures, R&D initiatives, and other strategic responses. At the industry level, now is a critical time for companies to focus on developing new technologies, strengthening cooperation among partners, and reducing costs to enhance overall competitiveness.
