South Korea Unveils $3.25B Support Plan for SMEs Facing U.S. Tariff Risks

South Korea has announced a comprehensive support package to help small and medium-sized enterprises (SMEs) potentially impacted by newly proposed U.S. tariffs. The government said on Wednesday the aid will total 4.6 trillion won ($3.25 billion) and aims to cushion the blow from trade disruptions caused by Washington’s 25% tariff policy, introduced in early April and currently under a 90-day suspension.

The relief plan includes financial assistance, subsidies to offset rising logistics costs, and strategic programs to diversify and expand export markets. The move comes as South Korean SMEs, which made up 17% of national exports in Q1 2025, express high vulnerability to U.S. trade policy shifts—81% of firms surveyed considered themselves exposed to the tariffs.

These emergency measures form part of a broader economic strategy to strengthen the country's export-dependent economy amid weak domestic demand and ongoing global uncertainties. Earlier this month, South Korea passed an extra 13.8 trillion won budget, which includes funding for tariff countermeasures, to help sustain growth and stabilize trade.

The government's rapid response underlines concerns over how escalating trade tensions with the U.S. may disrupt key export sectors. By providing targeted aid, officials aim to help SMEs secure supply chains, reduce export barriers, and adapt to shifting trade dynamics.

This initiative highlights South Korea’s commitment to protecting its smaller businesses, which are considered vital to the economy, particularly in times of global volatility. As U.S. tariffs remain a looming threat, Seoul’s strategic funding and market diversification efforts may prove crucial for sustaining SME growth and competitiveness on the global stage.