South Korean companies are rushing to adjust their trade strategies after U.S. President Donald Trump unexpectedly announced a 90-day suspension of reciprocal tariffs on April 10.
LG Electronics immediately held an emergency meeting led by its dedicated tariff task force following the announcement. Just a week earlier, on April 3, Trump had unveiled sweeping tariff plans—including a 25% levy on South Korean imports—prompting LG to draft a detailed supply chain adjustment plan. That plan has now been thrown into question as Trump signals a willingness to negotiate.
At the time, LG had analyzed total landed costs—factoring in reciprocal tariffs, logistics fees, and production costs—from its manufacturing bases in Korea, Vietnam, and Thailand to the U.S., and developed a detailed global supply adjustment strategy. However, with Trump now pursuing negotiations with various countries, the situation has effectively returned to square one.
Samsung Electronics has also ramped up internal discussions, with its CFO overseeing meetings to assess supply chain risks and component sourcing strategies.
Trump’s unpredictable trade policy is causing widespread confusion among South Korean exporters. Hyundai Motor has been especially hard hit. In January, shortly after taking office, Trump threatened a 25% tariff on vehicles made in Mexico—Hyundai’s main production base for the U.S. market. Tariffs were imposed early last month but lifted the next day, with a one-month exemption for cars. On March 24, Hyundai Executive Chair Chung Eui-sun met Trump at the White House and pledged a $21 billion investment. Two days later, Trump reimposed the 25% auto tariff. A separate 25% tariff on auto parts is also expected to take effect by May 3.
“The biggest concern right now is the ‘super unknown’—we’re living in an age of extreme uncertainty,” said SK Group Chairman Chey Tae-won last month. “It’s difficult to make decisions, and even when we do, we tend to delay them as much as possible.”
With the policy outlook so volatile, companies are rushing to secure shipments during the temporary tariff freeze. A South Korean clothing exporter in Vietnam said, “We’ve been getting a lot of inquiries from U.S. buyers asking if we can ship within the next three months.”
Small and mid-sized exporters are also feeling the strain. “We used to get steady annual orders from the U.S., but they’ve completely stopped,” said a manager at a small manufacturing firm. “If this keeps up, many small businesses may not survive.”
According to the Korea Trade-Investment Promotion Agency (KOTRA), its “Tariff Response 119” hotline for U.S. trade policy inquiries has received 2,389 consultation requests since its launch in February. Daily calls surged from 21 before the tariff announcement to 171 afterward, an eightfold increase.
Many companies now see the 90-day pause as a window of opportunity for negotiations. “We’re not reacting emotionally to each twist in policy,” said an executive at a large conglomerate. “We’re reviewing every scenario and watching the negotiations closely.” Some are also concerned that South Korea’s upcoming presidential election could leave a gap in trade diplomacy just as critical negotiations unfold.
