Fact Check: 5 trillion won designated to support small businesses affected by tariffs

Fact Check: "5 trillion won designated to support small businesses affected by tariffs"

What We Know

The claim that "5 trillion won" has been designated to support small businesses affected by tariffs lacks substantiation. The Congressional Budget Office (CBO) has projected that the increase in tariffs implemented between January 6 and May 13, 2025, is expected to raise significant revenue, estimated at over $5.2 trillion over ten years, but this revenue is primarily aimed at reducing federal deficits rather than directly supporting small businesses (source-1, source-2).

Moreover, while the economic effects of these tariffs are expected to be detrimental, particularly for small businesses that lack the resources to absorb increased costs, there is no specific allocation of funds amounting to 5 trillion won (approximately $4.5 billion) for their support (source-3, source-6).

Analysis

The assertion that a specific amount has been allocated for small business support is misleading. The CBO's analysis indicates that while tariffs will generate substantial revenue, the focus is on reducing federal deficits rather than providing direct assistance to small businesses affected by these tariffs. The projected revenue from tariffs is expected to be used for broader fiscal purposes, including reducing federal debt and interest payments, rather than targeted relief for small businesses (source-1, source-2).

Furthermore, reports indicate that small businesses are facing significant challenges due to the increased costs associated with tariffs, leading to a crisis for many in this sector (source-3, source-4). The lack of a specific support fund raises questions about the validity of the claim, as no credible source has confirmed the existence of such an allocation.

Conclusion

Verdict: False
The claim that "5 trillion won" has been designated to support small businesses affected by tariffs is false. The revenue generated from tariffs is projected to be used for reducing federal deficits rather than providing direct support to small businesses. There is no evidence or credible source that confirms the existence of a specific fund for this purpose.

Sources

1. Budgetary and Economic Effects of Increases in Tariffs Implemented
2. The Economic Effects of President Trump’s Tariffs
3. The Trump Tariffs: A Small Business Crisis
4. Tariffs on all imports would create chaos for business
5. Fact Sheet: President Donald J. Trump Declares National Emergency
6. Small businesses dread tariff fallout
7. So, has anything actually gotten more expensive because of tariffs?