Shockwaves have rippled through South Korea's economy as the United States enforces 25 percent tariffs on steel and aluminum imports. The tariffs are expected to heavily impact small and medium-sized enterprises across South Korea, which rely on these exports. CGTN correspondent Shane Hahm reports on how businesses are navigating these new challenges.

Pressure is mounting on South Korean businesses under the Trump administration's steel and aluminum tariffs. This company manufactures aluminum components that go into air conditioners, heat exchangers, and transformers. Last year, its exports generated nearly eight million dollars in revenue. But now, the company says an ongoing export deal with one U.S. firm – worth five million dollars annually – is now in jeopardy.

YOO KYUNG-YEON CEO GJ Aluminum "We've decided to move in the direction of diversifying right now. So, we're looking to expand into Europe and Southeast Asia. But the facilities we currently have are mostly designed with the U.S. in mind, and each of these new regions has very different requirements depending on the country."

SHANE HAHM Hwaseong, South Korea "South Korea was the 4th largest exporter of both steel and aluminum to the U.S. last year, according to U.S. government data. The country shipped nearly three billion dollars' worth of steel and 700 million dollars of aluminum. But now, with a 25-percent tariff rate taking effect, many small businesses are struggling to adapt."

JEONG HAN-SEONG CEO Shinjin Fasteners "Every country in the world is prioritizing its own protectionist policies, but who's looking out for our manufacturing industry? Companies that have worked hard for 50 years to stay strong could suddenly fall apart overnight, and that worry is keeping me up at night these days."

To address these concerns, the South Korean government has launched emergency support measures. A rapid-response team will offer financial aid and legal assistance to affected companies. Officials also plan to help exporters diversify their markets beyond the U.S.

OH YOUNG-JU Minister of SMEs and Startups "If tariffs cause any issues, we're ready to step in with support through our export vouchers. We also have emergency management stabilization funds already in place."

As small manufacturers brace for the economic fallout, the hope is that swift policy action can cushion the impact on small businesses looking for big results. Shane Hahm, CGTN, Hwaseong, South Korea.