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Hyundai Motor’s Ulsan plant, where eco-friendly vehicle production has expanded amid weakening U.S. demand. / Source: Yonhap News

South Korea’s car exports hit a record high for the month of August, but shipments to the United States continued to slide, dropping for the sixth consecutive month under the weight of U.S. tariffs.

According to the Ministry of Trade, Industry and Energy on Tuesday, exports to the U.S. fell 15.2% year-on-year to $2.097 billion in August. North America was the only region showing a decline, underscoring the widening impact of the 25% tariff.

The downturn began in March with a 10.8% drop and deepened to 19.6% in April and 27.1% in May. Though the pace of decline narrowed in June (-16%) and July (-4.6%), August marked another sharp contraction. Analysts warn that the tariff burden will continue to weigh on exports in the months ahead.

European markets helped offset the U.S. shortfall. Exports to the EU surged 54% to $792 million last month, led by strong gains in Germany ($160 million, +118.7%), Spain ($140 million, +54.5%) and the Netherlands ($80 million, +110.3%).

Other European markets also performed strongly, with exports climbing 73.2% to $547 million. The U.K. ($250 million, +115.7%) and Türkiye ($100 million, +96.1%) both saw exports nearly double.

Eco-friendly vehicles continued to drive overall growth, with shipments up 26.6% year-on-year to 69,000 units, marking an eighth straight monthly increase. Electric vehicle exports soared 78.4% to 23,000 units, led by the EV3 (7,444 units, mainly to Europe) and the Casper (export name “Inster”) at 3,333 units.