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March 14, 2025                                   
                                                  
Ministry of SMEs and Startups Discusses Measures for Exporting SMEs in Response to U.S. Tariffs

SEJONG – On March 12, the Ministry of SMEs and Startups (MSS) visited GJ Aluminum Co., Ltd. to hear about the challenges faced by exporting SMEs due to the U.S. government's 25% tariff on steel, aluminum, and related products, and to discuss possible response measures.

On February 10 (U.S. local time), President Trump signed a proclamation imposing tariffs on steel and aluminum imports to the United States. Subsequently, on February 18 (U.S. local time), the U.S. government announced a list of additional steel and aluminum derivative products subject to these tariffs.

At the meeting, CEO Yook Gyeong-yeon of GJ Aluminum stated, “Starting this year, we are negotiating an annual export contract worth USD 5 million with U.S. companies for aluminum parts used in air conditioners, heat exchangers, and transformers. However, the tariff measures imposed by the Trump administration are complicating our export negotiations.”

Additionally, Jeong Han-seong, CEO of Shinjin Fasteners Co., Ltd., noted, “It is difficult for the domestic fastener industry to secure alternative raw material supply chains outside of large domestic enterprises.” He emphasized the need for government-level monitoring and support policies to prevent a sharp increase in prices for domestic steel and aluminum raw materials.

In response, MSS plans to establish an emergency response team to create a swift support system for companies affected by the tariffs. First, 15 regional reporting centers will manage damage reports and provide consultations for exporting SMEs. MSS intends to offer guidance on the list of steel, aluminum, and derivative products subject to U.S. tariffs, along with relevant information and consultation support.

Additionally, MSS and the Korea Federation of SMEs (KBIZ) will conduct a joint survey in March targeting steel and aluminum SMEs exporting to the U.S. The survey will address export challenges and policy needs. Based on the results, MSS plans to review additional measures, including customized information provision, expanded training on origin certification, and legal service support.

Secondly, to provide swift support to SMEs facing operational challenges due to the tariff measures, MSS will add "protectionist trade damage" as a reason for applying for emergency management stabilization funds, enabling the provision of management normalization funds. Additionally, the application process for emergency management stabilization guarantees for affected companies will be simplified.

Thirdly, MSS will offer preferential support for export diversification to companies impacted by the tariff measures. During the second announcement of the export voucher program (scheduled for May), separate support allocations will be designated for affected companies to assist in developing export strategies. For SMEs diversifying into different export markets in response to the tariff measures, MSS plans to simplify the evaluation process by exempting them from priority assessments for policy funding and utilizing a fast-track evaluation.

Minister OH Youngju stated, “With the implementation of tariff policies under the Trump administration’s second term, the uncertainties in the external environment faced by exporting SMEs are greater than ever.” She emphasized, “Together with KBIZ and relevant industry associations, we will actively support the normalization of operations for exporting SMEs affected by tariffs and assist in their efforts to diversify export markets through prompt support.”