▶ Tariff Impact Fully Reflected
▶ Snacks, Ramen, Frozen Foods Affected
The shock of the Trump administration’s universal and reciprocal tariffs is becoming a reality across various sectors, with prices of Korean food products imported into the U.S. rising, forcing Korean-Americans to bear higher costs than before. Korean residents in Southern California are increasingly feeling the pinch as they notice a significant rise in the prices of Korean food products at local Korean markets, letting out sighs of frustration.
Housewife Cho Mo said, “The prices of frozen dumplings, snacks, seaweed, and ramen—foods my kids love—keep going up. With no increase in our income, planning meals is getting tougher by the day.” Another Korean housewife, Park Mo, shared, “Due to the price burden, I’m trying to buy Korean products only when they’re on sale. Visiting two or three Korean markets every week has become my routine.”
Korean markets, which have so far tried to suppress price hikes, now find it unavoidable to raise prices as the cost of tariffs is fully reflected. With wholesale prices increasing, retail prices will eventually have to follow suit. These markets are concerned that the growing popularity of K-Food in the U.S. might be stifled by rising prices and reduced consumption. Amid this situation, the growth trend in K-Food exports to the U.S. has stalled for the first time in over two years.
According to statistics from the Korea Trade Statistics Promotion Institute, the export value of processed foods, including ramen and snacks, to the U.S. in July was $139 million, a decrease of $10 million (6.7%) compared to the same period last year. This marks the first decline in U.S. agricultural and food product exports year-over-year since May 2023, a span of two years and two months.
The export value of ramen, a key product, to the U.S. in July was $14 million, down 17.8%. Although ramen exports increased by 40.8% in the first half of this year compared to the same period last year, the downward trend emerged in July. Snack exports to the U.S. totaled $20 million in July, a 25.9% drop (approximately $7 million) from the previous year. Sauces decreased by 7.2% to $7 million, while ginseng products (-13.4%) also saw a decline in exports to the U.S. last month. Cumulative agricultural and food product exports to the U.S. through July reached $1.073 billion, up 21.3% from the same period last year, surpassing $1 billion.
However, the month’s decline reduced the year-to-date growth rate from 27% in June. The drop in July agricultural and food exports to the U.S. may partly be attributed to preemptive ordering ahead of anticipated high reciprocal tariffs. Samyang Foods, which accounts for most U.S. ramen exports with its Buldak Bokkeummyeon, stated, “In the U.S., we increased exports through June to secure inventory due to tariffs.” In contrast, Nongshim produces nearly all the ramen consumed in the U.S. locally, while Samyang Foods and Ottogi face similar challenges.
The food industry views this as evidence that the impact of Trump tariffs is beginning to slow K-Food exports to the U.S. A food industry insider commented, “From the consumer perspective, prices for some items will rise further even after the minimum reciprocal tariff of 15%, making a consumption drop inevitable. As sales decline, U.S. distributors seem to be reducing their orders.” Concerns about a U.S. economic slowdown, coupled with waning consumer sentiment, also signal trouble for the Korean food industry. A recent AP-NORC poll found that 57.0% of respondents cited grocery expenses as a primary source of stress. Meanwhile, the Ministry of Agriculture, Food and Rural Affairs has set a goal of achieving $14 billion in exports for “K-Food Plus,” including agricultural materials, this year. However, total agricultural and food exports in July were $840 million, down 5.3%.