Overview of Global Trade Regulation Trends
The final v3 trade regulation trends report provides a consolidated review of the most important shifts in the global trade environment during the first half of 2025. It assesses how tighter U.S. tariff policy, the operational rollout of the EU Carbon Border Adjustment Mechanism (CBAM), and China's retaliatory tariff measures are influencing Korean exporters and the broader trade environment surrounding Bangladesh. As protectionism has intensified in 2025, non-tariff barriers have become materially more significant in practical business strategy.
Changes in U.S. Tariff Policy and Their Effects
In 2025, the United States significantly expanded additional tariffs on Chinese-origin products and also began re-examining steel and aluminum tariffs applied to allied economies. The policy direction is notable for its combined use of multiple trade defense instruments, including Section 301, Section 232, anti-dumping measures, and countervailing duties. Korean exporters face both direct and indirect exposure, particularly in steel, semiconductors, and automotive supply chains.
| Measure Type | Target Country/Product | Tariff Rate or Action | Impact on Korea |
|---|---|---|---|
| Section 301 | Chinese electronics and batteries | 25 to 100% | Indirect impact via supply chains |
| Section 232 | Steel and aluminum | 25% | Direct impact through weaker exports |
| Anti-dumping duties | Selected Korean steel products | 5.7 to 12.3% | Direct impact |
| IRA subsidy rules | EVs and batteries | Conditional tax credits | Mixed: opportunity and risk |
| Export controls | Advanced semiconductors and equipment | Restrictions on exports to China | Indirect impact through technology dependence |
EU CBAM and the Expansion of Non-Tariff Barriers
The European Union began implementing CBAM in earnest from 2025, imposing carbon-related costs on imports across six sectors: steel, cement, fertilizer, aluminum, electricity, and hydrogen. In practice, this functions as a non-tariff barrier that can weigh heavily on exporters from developing economies with higher embedded emissions. For Bangladesh, there is a credible possibility that the apparel sector could eventually fall within an expanded CBAM scope, making early adaptation essential.
Bangladesh's Trade Environment and Implications for Korean Firms
Bangladesh is preparing for graduation from Least Developed Country status in 2026, after which it may lose access to preferential tariff treatment under GSP schemes. That shift could weaken export competitiveness in several sectors. Korean companies therefore need to reassess investment and export strategies with closer attention to Bangladesh's evolving trade conditions.
Response Strategy and Outlook
The current trend toward stronger trade restrictions is likely to persist in the near term. Korean firms should reinforce regulatory monitoring, conduct regular product- and market-level risk reviews, and update response plans accordingly. In particular, proactive preparation for supply-chain due diligence and ESG-related regulation will be critical to preserving market access.