AsianFin -- South Korea’s central bank warned Thursday that exports of automobiles, steel, and semiconductors are set to decline as U.S. President Donald Trump’s new tariffs begin to take effect later this year.

In a report, the Bank of Korea projected that weaker car shipments will reduce the country’s total exports by 0.6% and exports to the U.S. by 4.0%, calling it the most significant downside risk. South Korean automakers have so far relied on existing inventory to cushion the blow from the 25% U.S. tariffs, the bank noted.