KOTRA Tariff 119 Project 100 Companies: Free Support for U.S. Tariff Response
The U.S. trade policy shift of 2025 has created a major inflection point for Korean exporters. The Trump administration's universal baseline tariff of 10%, Korea-specific reciprocal tariffs, and sector-specific levies targeting steel, aluminum, and automobiles are combining to reshape the competitive landscape. With more than 127 key HS code categories affected, the structural impact on Korean exports demands an immediate and systematic response.
KOTRA launched the "Project 100 Companies" initiative as a targeted response program for Korean exporters most vulnerable to U.S. tariff measures. The program delivers HS code reclassification analysis, FTA origin strategy consulting, supply chain redesign advisory, alternative market development (including Bangladesh and Southeast Asia), and drawback/exclusion support — all at zero cost to participating companies.
100+
Target Companies
Priority selection by tariff exposure
127
HS Codes Covered
Key export product categories
10–25%
U.S. Tariff Range
Baseline to reciprocal rates
50+
Expert Consultants
Customs, FTA, supply chain specialists
6+ Months
Support Duration
Tailored engagement per company
100% Free
Consulting Cost
Government-funded program
5–15%
Cost Reduction Target
Typical tariff burden reduction
Incl. Bangladesh
Alternative Markets
SE Asia, South Asia, LatAm
U.S. Tariff Structure: What Korean Exporters Are Facing
The 2025 U.S. tariff escalation is unprecedented in its breadth. Unlike traditional trade remedies targeting specific sectors, the new framework applies baseline tariffs universally while layering additional industry-specific and country-specific measures on top. Korean exporters must now navigate multiple overlapping tariff regimes simultaneously.
U.S. Tariff Measures Affecting Korean Exporters (2025)
| Tariff Type | Rate | Targeted Products | Korean Exporter Impact |
|---|---|---|---|
| Universal Baseline | 10% | All imports from all countries | Immediate cost increase across all export items |
| Korea-Specific Reciprocal | 15% | Korea-origin goods (above baseline) | Direct competitiveness erosion vs. exempted countries |
| Section 232 — Steel/Aluminum | 25% | Steel, aluminum, and derivative products | Critical impact on steel, machinery, and auto parts |
| Section 232 — Automotive | 25% | Passenger vehicles and light trucks | Significant impact on Korean auto assembly exports |
| Semiconductors/Electronics | TBD | Chips, circuit boards, consumer electronics | Under investigation; high-watch-list for Korean tech firms |
5 Core Consulting Services
01
① HS Code Reclassification Analysis
Many products can be legitimately reclassified under different HS codes that carry lower tariff rates. KOTRA customs specialists analyze product specifications, manufacturing processes, and end-use functions to identify valid reclassification options. In the automotive sector, companies have reduced effective tariff rates by 5–10 percentage points through proper HS reclassification, with one example showing $2M+ in annual savings. KOTRA also supports CBP Advance Ruling applications for binding U.S. Customs determinations.
02
② FTA Country-of-Origin Strategy
By restructuring manufacturing processes to meet FTA rules-of-origin thresholds, exporters can access preferential tariff rates. Korea's FTAs with ASEAN, Vietnam, and other markets create viable production hub options. A cosmetics company case: by shifting final processing to Vietnam and leveraging ASEAN trade conditions, combined with Bangladesh as a secondary supply base, the company eliminated reciprocal tariff exposure entirely while opening new emerging-market channels.
03
③ Supply Chain Redesign
For companies unable to reclassify HS codes or change production origin, supply chain restructuring offers the most structural solution. This involves identifying alternative component suppliers in tariff-exempt countries, relocating assembly operations, or partnering with contract manufacturers in favorable jurisdictions. Electronics companies have achieved 40% reductions in tariff-exposed procurement value through strategic supply chain redesign.
04
④ Alternative Market Development
Reducing U.S. market dependency through diversification is a parallel priority strategy. Bangladesh is a top-tier alternative: with 6–7% GDP growth, a population of 170 million, and accelerating middle-class expansion, it represents a genuine volume opportunity for Korean manufacturers. KOTRA Dhaka Trade Center provides distributor matching, regulatory navigation, and market entry support for companies pivoting away from U.S. concentration.
05
⑤ Drawback and Exclusion Petition Support
U.S. duty drawback programs allow exporters to recover tariffs paid on goods subsequently exported. Product-specific exclusion petitions can also be filed with the USTR for items with no viable domestic U.S. alternative. KOTRA specialists help companies identify drawback eligibility, calculate recoverable amounts, and prepare technically compliant exclusion petitions — a service typically costing $50,000+ when handled by private trade law firms.
Service Matching by Company Type
Project 100 Companies: Recommended Services by Exporter Profile
| Company Type | Primary Challenge | Recommended Service | Expected Outcome |
|---|---|---|---|
| Steel and metal fabricators | Section 232 25% tariff | HS reclassification + supply chain redesign | Effective rate reduction of 5–10 percentage points |
| Auto parts manufacturers | Reciprocal + Section 232 compounding | Origin strategy + Mexico/Canada routing option | FTA preferential tariff utilization |
| Electronics and semiconductor | Investigation risk + baseline 10% | Drawback recovery + exclusion petition | Cost recovery and rate protection |
| Cosmetics and consumer goods | Baseline + reciprocal competitiveness loss | Origin strategy + Bangladesh market entry | Market diversification and effective rate reduction |
| Machinery and industrial equipment | 10% baseline + sector-specific levies | HS reclassification + alternative market development | Margin recovery through cost and revenue rebalancing |
| Pharmaceuticals | Moderate direct impact | Bangladesh DGDA registration strategy | New-market volume offsetting U.S. market decline |
Program Application and Engagement Process
Project 100 Companies: Engagement Flow
Application
Submit company profile and affected HS codes via KOTRA portal or local trade office
→↓
Tariff Diagnosis
Comprehensive tariff exposure analysis across full product portfolio (approx. 2 weeks)
→↓
Expert Team Assignment
Dedicated team: customs broker + supply chain specialist + overseas trade office
→↓
Strategy Roadmap
Company-specific 6-month action plan with prioritized initiatives and milestones
→↓
Execution Support
Hands-on assistance with HS filings, FTA origin documents, market entry, drawback claims
→↓
Ongoing Monitoring
Real-time tariff landscape tracking and strategy adjustment as policy evolves
Three Company Case Studies
Three representative case studies illustrate the tangible outcomes achieved through the Project 100 Companies program, each demonstrating a different core service:
01
Auto Parts Manufacturer A: HS Reclassification Saves $2M+ Annually
A Tier-1 automotive parts supplier faced 25% Section 232 tariffs on its primary U.S. export product. KOTRA customs specialists found that when the product was analyzed based on its functional characteristics rather than material composition, it qualified under a different HS 8-digit code carrying only the 10% baseline tariff. The reclassification was filed with CBP, and a binding Advance Ruling confirmed the new classification. Annual tariff costs fell by $2M+, restoring price competitiveness against domestic U.S. suppliers.
02
Cosmetics Company B: FTA Origin Compliance + Bangladesh as New Market
A Korean cosmetics exporter with 40% of revenue from the U.S. market implemented a two-part strategy. First, by shifting sourcing of key input materials to Korean-origin alternatives, the company re-qualified for Korea-U.S. FTA preferential tariff rates (0%). Second, the company engaged KOTRA Dhaka to identify Bangladeshi distributors for its K-beauty product line. Within 8 months, new Bangladesh market sales replaced approximately 30% of the projected U.S. revenue shortfall, diversifying the company's export base in both directions.
03
Electronics Company C: Supply Chain Restructuring Reduces Tariff Exposure 40%
An electronics components manufacturer found that 60% of its component inputs came from tariff-exposed geographies, creating compounding cost pressures. KOTRA supply chain specialists mapped alternative qualified suppliers in Malaysia, Thailand, and India for 15 key components. By qualifying Malaysian-origin components under ASEAN FTA rules and restructuring the procurement model, the company reduced its tariff-exposed input value by 40% — achieving a 6 percentage point reduction in total effective landed cost.
Priority Target Company Profiles
U.S. direct exportersAny tariff category — immediate relief needed
Steel and metal productsSection 232 25% — highest urgency
China-linked supply chainsDouble tariff exposure risk
FTA underutilizersMissing preferential rate benefits
Diversification seekersCompanies targeting Bangladesh and ASEAN
Program Benefits Summary
Cost100% free — fully government-funded
Expert team1:1 assignment of customs, FTA, and market specialists
SpeedInitial diagnosis delivered in approximately 2 weeks
Duration6-month concentrated support cycle
Follow-upReal-time tariff change monitoring and alerts
KOTRA Tariff Response Voucher Program
Alongside the Project 100 Companies consulting program, KOTRA operates a Tariff Response Voucher that provides direct financial subsidies for specific tariff-response activities. Companies receive government funding for market research, exhibition participation, marketing for new markets, and customs/legal support — all out-of-pocket-free.
KOTRA Tariff Response Voucher: Activities and Support Limits
| Activity | Maximum Subsidy | Eligible Uses |
|---|---|---|
| Overseas market research | KRW 5 million | Country entry feasibility, distributor surveys, regulatory and tariff research |
| Trade exhibition participation | KRW 10 million | Booth costs, travel expenses, sample shipment for alternative market exhibitions |
| Marketing and promotion | KRW 5 million | Catalog translation, digital marketing for new target markets (including Bangladesh) |
| Customs and legal consulting | Actual cost | HS reclassification filing, exclusion petitions, CBP binding ruling applications |
The U.S. tariff environment will continue evolving, and companies that treat this as a temporary disruption risk permanent displacement by competitors who adapt. KOTRA's Project 100 Companies and Tariff Response Voucher programs provide the strategic frameworks, expert guidance, and financial resources to convert tariff pressure into competitive realignment. For companies exploring Bangladesh as an alternative market, KOTRA Dhaka's extensive distributor network and market intelligence make it an ideal entry point for South and Southeast Asian market diversification.
KOTRA Tariff 119 Comprehensive Support CenterOverview of the full range of KOTRA emergency support services for tariff-affected exporters
Seven Core Tools in the Tariff Response RoadmapThe broader response framework for tariff-related trade risks and strategic options
U.S. CBP Advance Ruling: HS Classification StrategyHow to obtain binding U.S. Customs rulings for tariff classification certainty
Bangladesh Economy 2025 OverviewBangladesh as an alternative market for U.S.-tariff-affected Korean exporters
Tariff 119tariff responseHS codeFTA originsupply chain redesignBangladesh alternative marketexport support
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