Concerns Over Export Contraction for SMEs Under 'Trump 2nd Term'... Ministry of SMEs and Startups Conducts On-site Inspection

Minister Oh Young-joo Listens to Field Opinions Following US Presidential Election Results
Expresses Commitment to Addressing Challenges and Preparing Response Measures

With Donald Trump’s successful re-election in the 47th U.S. presidential election, it is expected that the export competitiveness of our companies will decline. In response, the Ministry of SMEs and Startups has begun identifying export-oriented small and medium enterprises (SMEs) to devise countermeasures.

On the 21st, Oh Young-joo, Minister of SMEs and Startups, visited Audin Futures located in Seocho-gu, Seoul, to assess the impact of the U.S. election results on SMEs in the cosmetics sector and to listen to the difficulties and suggestions from companies.

Minister Oh Young-joo of the Ministry of SMEs and Startups is speaking on measures to strengthen protection and relief for innovative startup technologies at the Economic Ministers' Meeting held on the 16th at the Government Seoul Office in Jongno, Seoul. Photo by Jo Yong-jun jun21@

Exports from SMEs to the U.S. have maintained an increasing trend for five consecutive quarters compared to the same period last year, surpassing China, which had been the top export destination, to become the largest export market since the fourth quarter of last year. As of the cumulative total in September this year, cosmetics exports to the U.S. reached $990 million, a 49.6% increase compared to the same period last year, leading overall cosmetics exports.

Accordingly, Minister Oh stated, “As U.S. exports of cosmetics are expanding, I visited Audin Futures, a cosmetics manufacturing company, to closely examine the current status of the industry following the U.S. election results.”

Choi Young-wook, CEO of Audin Futures, said, “Due to the U.S. election results, concerns arise over weakened price competitiveness of products caused by tariff increases and strengthened regulations in the cosmetics sector. This is a time when government attention and support are necessary to respond to these changes in the trade environment.”

Minister Oh said, “Although it is still difficult to predict specific policies of the Trump administration, policy changes are expected across all areas including economy, diplomacy, and security. We will promptly assess the difficulties faced by export SMEs due to these policy changes and prepare countermeasures.”

She added, “In particular, we will closely examine the impact of the Trump administration’s policies on cosmetics, the top export item among SMEs, to ensure the continued growth of cosmetics exports.”

Meanwhile, the Korea Institute for SMEs and Startups Research anticipates that due to Trump’s America-first stance, tariff barriers and price competitiveness for Korean SMEs and startups with a high export ratio to the U.S. will be weakened.

The institute analyzed that additional U.S. tariffs on Chinese products will lead to a decrease in China’s exports to the U.S., which will negatively affect China’s demand for Korean intermediate goods. Especially, SMEs and small business owners with high dependence on Chinese intermediate goods and vulnerability to external shocks are expected to face significant risks.