South Korea’s GJR Aluminium faces hurdles in export negotiations following Trump’s tariff measures

GJR Aluminium, based in Hwaseong, Gyeonggi Province, has emerged as a key player in export negotiations, navigating complex global trade dynamics. Since early 2025, the company has been actively seeking partnerships with US firms, focusing on securing a substantial $5 million annual contract to supply aluminium components for air conditioners, heat exchangers, and transformers.

Image Source: Ministry of SMEs and Startups

Despite its efforts, the company — like many others — has faced significant challenges following the tariffs introduced by the US government during the Trump administration. U-Kerun, head of GJR Aluminium, emphasised the impact, stating, "We are having difficulties in export negotiations due to the Trump administration's tariff measures." This statement echoes a wider industry concern, highlighting how these policies are disrupting export strategies.

Yoo Kyoung-yeon, CEO of GJR Aluminum, said, “We are currently negotiating export contracts with American companies for aluminium parts used in air conditioners, heat exchangers, and transformers, but we are experiencing difficulties in export negotiations due to tariff measures.”

Addressing SME concerns- onsite meeting & govt. commitment

On March 12, 2025, the Ministry of SMEs and Startups, in collaboration with the Korea Federation of Small and Medium Business, held an onsite meeting at GJR Aluminium to hear first-hand from SMEs navigating tariff-related challenges. He reassured attendees of the ministry's dedication to delivering comprehensive support to ease the burdens faced by SMEs.

Minister of SMEs and Startups Oh Young-joo emphasised the current climate of uncertainty, noting, "The uncertainty in the external environment felt by the mid-term export is higher than ever due to the realisation of the Trump 2nd administration's tariff policy."

To address these challenges, the Ministry of SMEs and Startups announced some important steps:

• An emergency team would be launched to provide swift support for corporations impacted by tariffs. They will establish 15 assistance reporting centres nationwide to gather damage reports and offer consultations for export SMEs.
• The task force will develop countermeasures to help firms navigate these difficulties and stabilise their operations. Jeong Han-sung, CEO of Shin Jin-hwasner Industrial, underscored the domestic industry's vulnerability, stressing the limited availability of alternative raw material supply chains for smaller businesses.
• Additionally, the ministry will share detailed information on the steel, aluminium, and derivative products subject to U.S. tariffs, alongside tailored consultation services.
• To ease financial strain, ‘protectionist trade damage’ will be recognized as a valid reason for accessing emergency management stabilization funds, simplifying paperwork and expediting access to management normalization support.
• Export corporations affected by tariffs will also receive priority support for market diversification. The upcoming second export voucher program, set for May, will allocate dedicated resources for these businesses, including export strategy consulting.

Jeong Han-sung, CEO of Jinsin Precision, emphasised, “It is necessary for the government to implement support policies to prevent domestic steel and aluminium raw material prices from skyrocketing.”

Collective effort for a sustainable trade future

The Ministry and the Korea Federation of SMEs also announced plans to conduct surveys this month, focusing on small and medium-sized steel and aluminium companies exporting to the United States. This initiative seeks to thoroughly evaluate the specific challenges these businesses face and collect valuable data to shape future policy recommendations and support measures.

He also reaffirmed the Federation's dedication to supporting the global expansion of Korean businesses, announcing plans to host the World Korean Business Conference next month. The event aims to provide SMEs with a platform to explore international opportunities and develop strategies to navigate current trade challenges.

The discussions between GJR Aluminium and government representatives underscore the urgent need for coordinated efforts to manage the complex dynamics of tariffs and trade agreements. With GJR Aluminium's aspirations to enter the US market hanging in the balance, the future of many local SMEs may rest on the success of these initiatives and policy interventions.