Korea Federation of SMEs Discusses Export Strategies for SMEs Amid New Trump Tariff Barriers

First Meeting of the 2025 SME Globalization Support Committee Held
Focus on Supporting Overseas Expansion and Integration into Global Supply Chains
Discussion of Response Strategies to US-China Trade Competition and Reciprocal Tariffs
Emphasis on Strengthening Export Capabilities of Korean SMEs

The Korea Federation of SMEs announced on May 23 that it held the '2025 First Meeting of the SME Globalization Support Committee' at the Yeouido headquarters of the Federation.

The SME Globalization Support Committee is a newly established consultative body aimed at supporting the expansion of SMEs into overseas markets and their integration into global supply chains. It operates with the purpose of identifying regulatory improvements and policy tasks, and communicating them to the government and the National Assembly. The committee consists of 14 members, including Chairman Kang Donghan of the Korea Forging Industry Cooperative, representatives of SME cooperatives, and academic experts, and is expected to operate for about two years.

At the meeting, Kim Seoko, director of the International Customs and Trade Advisory Center, gave a presentation on the topic of 'US-China Hegemonic Competition and Our Response Strategies.' Kim emphasized, "The tariff policy of the Trump administration's second term is expanding into a comprehensive form of reciprocal tariffs. Depending on whether rules of origin requirements are met, tariff rates can differ by several dozen times, so it is essential to overhaul the origin verification system and conduct pre-export reviews." He also proposed effective response strategies to enhance the export capabilities of Korean SMEs, including: ▲ meeting FTA rules of origin requirements, ▲tariff-saving strategies, ▲tax credits for US-origin raw materials, ▲and utilizing foreign trade zones and duty drawback systems.

Chairman Kang stated, "The reciprocal tariffs of the Trump administration will serve as a new barrier for SMEs exporting to the US. In fact, a survey showed that 81% of SMEs exporting to the US responded that they would be negatively affected if reciprocal tariffs are imposed." He added, "In particular, high tariffs are expected to be applied to items with a high proportion of SMEs, such as steel and aluminum derivative products and auto parts, which will significantly impact both the direct and indirect exports of SMEs."

Chairman Kang also added, "We will seek ways for SMEs to take the lead in pioneering overseas markets and diversifying supply chains."

This content was produced with the assistance of AI translation services.