SEOUL – Korean businesses are preparing for potential disruptions to their U.S. sales as the specter of increased tariffs looms. A recent analysis by Leaders Index, a corporate data tracker, suggests that Korean chipmakers, automakers, pharmaceutical, and bio-health companies could be significantly impacted by any new trade barriers.

The Leaders Index study, which surveyed 100 of Korea’s top 500 companies by sales, revealed a robust 19.5 percent surge in U.S. sales for these firms during the first nine months of 2024, reaching a combined 31215.7 billion). This growth pushed the proportion of U.S. sales to 28.1 percent of total sales, up from 25.2 percent in the same period last year.

However, this positive trend could be reversed if additional tariffs are implemented. Leaders Index warns that higher tariffs would erode the price competitiveness of Korean goods in the U.S. market, leading to decreased sales.

“Companies like Samsung Electronics and Hyundai Motor, which already have manufacturing operations in the U.S., may opt to further increase their domestic production to mitigate the effects of higher tariffs,” commented Park Ju-gun, Chief Executive of Leaders Index.

These concerns arise in the wake of recently imposed tariffs on steel and aluminum imports. The measure, a 25 percent tariff, is intended to incentivize businesses to establish themselves within the United States. Furthermore, the U.S. government has hinted at the possibility of implementing retaliatory tariffs against certain trading partners. The potential for a wider trade conflict has left Korean exporters on edge, prompting them to explore strategies to minimize potential losses.

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