South Korea’s annual automobile exports are projected to decline for the first time in five years, weighed down by U.S. tariff policies and rising trade protectionism, according to estimates from the Korea Automobile & Mobility Association.

The association forecasts that South Korea will export 2.71–2.72 million vehicles this year, a decrease of 2.3% to 2.6% from last year’s 2.7826 million units. The drop is driven largely by weaker shipments to the United States, South Korea’s largest overseas market.

From January to October, South Korean automakers exported approximately 1.1075 million vehicles to the U.S., down 7.9% year-on-year. Industry officials warn that prolonged U.S. tariff measures and broader protectionist trends could place even greater pressure on South Korea’s automotive export sector.