Package 2: Restructure the Supply Chain to Reduce Tariff Exposure
One of the most fundamental responses to US reciprocal tariffs is to redesign the supply chain itself. By sourcing intermediate goods from countries with lower tariff burdens or by securing offshore OEM production bases, companies can reduce tariff costs structurally rather than temporarily. Tariff Response Export Voucher Package 2 is designed to support that transition through supplier diversification and OEM discovery services.
Three Core Service Areas
Comparison of Alternative Sourcing Locations
| Country | Strengths | Weaknesses | US Tariff Rate | Access from Korea |
|---|---|---|---|---|
| Bangladesh | Lowest labor costs, LDC preferences | Infrastructure gaps | 37% (reciprocal tariff) | Good (CEPA under discussion) |
| Vietnam | Strong manufacturing base, FDI ecosystem | Rising labor costs | 46% | Excellent (FTA in force) |
| India | Large domestic market, technical workforce | Administrative complexity | 26% | Good (CEPA in force) |
| Indonesia | Resource base, large market size | Higher logistics costs | 32% | Good (FTA in force) |
| Thailand | Advanced industrial infrastructure | Higher wages | 36% | Excellent (FTA in force) |
| Cambodia | Very low labor costs | Limited industrial depth | 49% | Moderate |
OEM Discovery Process
Bangladesh as a Potential OEM Base
Bangladesh offers several practical advantages as an OEM base for tariff response strategies. Its low monthly wage level of roughly USD 113, LDC-related preference benefits valid through 2026, and ongoing CEPA discussions with Korea together create a favorable platform. Beyond garments, Korean firms are also expanding OEM production in light manufacturing, food processing, and electronics assembly.
Supplier diversification and OEM discovery offer a structural response to tariff shocks. While the transition requires time and upfront cost, it provides a long-term method for dispersing supply chain risk and improving cost competitiveness. Companies should treat the tariff environment not only as a threat but also as an opportunity to redesign their production network, using government voucher support to reduce the cost of transition.