South Korea seeks to leverage Trump’s interest in shipbuilding in tariff talks
South Korea is aiming to gain tariff advantages by partnering with the United States in shipbuilding, amid Washington’s focus on revitalizing its aging naval and commercial shipyards to compete with China’s growing maritime power.
The U.S. administration under Donald Trump has repeatedly highlighted the importance of boosting domestic shipbuilding capacity. South Korea, the world’s second-largest shipbuilder, is proposing a "Korea-U.S. manufacturing renaissance partnership" that would include investments to modernize U.S. shipyards and increased involvement in repairing and maintaining the U.S. naval fleet, News.Az reports, citing Reuters.
South Korean conglomerates like Hanwha Ocean and HD Hyundai have already established ties with U.S. shipyards, securing Navy maintenance contracts and forming partnerships to build naval and commercial vessels. However, challenges remain, including regulatory hurdles such as the Jones Act, limitations on foreign-built naval vessels, and shortages of skilled workers at U.S. shipyards.
The partnership discussions come as South Korea faces pressure to finalize a trade deal with the U.S., following Japan’s recent agreement. The legacy of Trump’s 1998 visit to a Korean shipyard, where he expressed admiration for the facilities, continues to influence the willingness for cooperation.
Experts see shipbuilding as South Korea’s key leverage in tariff negotiations, offering Washington a strategic means to counter China’s expanding naval presence.
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