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March 7, 2025                                   
 
MSS Expresses Strong Commitment to Supporting SMEs in Response to U.S. Trump Administration's Tariff Policies

SEJONG – On Wednesday, March 5, Oh Youngju, Minister of SMEs and Startups, visited Yulchon, an automotive parts manufacturer in Siheung, Gyeonggi-do, to assess the impact of the U.S. 25% tariff on Canada and Mexico on small and medium-sized enterprises (SMEs) and to hear the company's challenges and suggestions.

The U.S. Trump administration’s 25% tariff on Canada and Mexico was initially set to take effect on February 4 but was delayed by a month. With its implementation, SMEs that have entered the Canadian and Mexican markets alongside large corporations, as well as those exporting to the U.S. through Canada and Mexico, are expected to face significant challenges.

In response, MSS has been operating a task force (TF) since November 2024 to address the challenges posed by the second Trump administration. On February 18, MSS announced the ‘Export Support Measures for SMEs and Startups’ to provide assistance to SMEs affected by the U.S. tariffs.

First, to alleviate the operational difficulties faced by companies impacted by the tariffs, MSS has established an Export Difficulties Reporting Center at 15 export support centers to receive reports and provide consultations on damages caused by the U.S. tariffs. MSS plans to support the rapid normalization of operations for affected companies through emergency stabilization funds.

Second, to quickly support companies diversifying their export markets in response to the U.S. tariffs, MSS has introduced a “Policy Fund Fast Track” for SMEs seeking market diversification. Going forward, MSS plans to prioritize support for SMEs affected by the U.S. tariffs through export consortiums and voucher programs to help them find new buyers.

Additionally, starting in 2025, MSS will provide KRW 60 billion in policy funds to overseas subsidiaries of domestic SMEs for the first time to ease their operational burdens. Furthermore, MSS plans to implement a program offering up to KRW 1 billion in subsidies for up to three years to SMEs establishing overseas subsidiaries with large corporations or relocating to other countries.

During the site visit, Lee Heung-hae, CEO of Yulchon, mentioned that the company is in discussions with local U.S. buyers to explore ways to counter the Trump administration’s tariffs. He emphasized that while individual companies are preparing their own countermeasures, government-level support is also crucial at this time.

Minister Oh Youngju stated, “We will promptly assess the difficulties faced by SMEs due to the U.S. tariffs and actively implement policies to normalize the operations of affected companies and diversify export markets.” She added, “We also plan to seek active cooperation from large corporations to minimize the impact on SMEs supplying to domestic large corporations operating overseas.”