In brief
In light of potential tariffs on its exports, South Korea is aiming to utilize its robust shipbuilding industry in upcoming trade talks with the U.S.
With the threat of a hefty 25% tariff on its exports, South Korea is proactively engaging in trade talks with the United States and is determined to use their booming shipbuilding sector as a negotiating tool. As the world’s second-largest shipbuilder after China, South Korea believes its major shipbuilding capabilities align well with President Trump’s ambitions to reinvigorate the U.S. maritime industry. Seoul’s officials aim to demonstrate how collaboration in shipbuilding could benefit both nations while mitigating tariffs affecting key exports including cars from Hyundai and Kia, as well as steel and appliances from LG. The U.S. has acknowledged that shipbuilding will be a focal point in their upcoming trade negotiations. Additionally, both nations will likely discuss large-scale purchases of liquefied natural gas from the U.S. to help reduce South Korea's trade surplus. South Korea’s trade and industry minister, Ahn Duk-geun, has emphasized the importance of shipbuilding discussions in these negotiations, suggesting it could be a critical bargaining chip. Meanwhile, finance minister Choi Sang-mok hopes to meet with U.S. Treasury Secretary Scott Bessent to solidify talks. Unlike larger nations that have retaliated, South Korea seeks to negotiate a favorable deal without imposing its own tariffs.
