The government says that the U.S.’ stronger sanctions on Iran will deal a blow to South Korean exporters.

The Ministry of Trade, Industry and Energy said that South Korean exporters are expected to suffer a plunge in their shipments to Iran as tougher U.S. sanctions on the Islamic country will go into effect on July first under the National Defense Authorization Act.

A ministry official said that it can calculate the exact scope of damage on South Korean exporters only after the U.S. releases guidelines on the implementation of the sanctions.

However, South Korea will continue to import crude oil from Iran since the U.S. exempted South Korea from its financial sanctions on Iran’s oil industry.

The ministry is planning to distribute detailed guidelines to help lessen damage on South Korean traders.