South Korea Leverages Shipbuilding Strength Amid Trade Tensions with U.S.

In preparation for crucial trade negotiations with the United States next week, South Korea is planning to utilize its robust shipbuilding sector as a bargaining chip. As the world’s second-largest shipbuilder, South Korea believes its shipbuilding capabilities can appeal to President Trump’s ambitions to revitalize the American maritime industry. This comes in light of Trump's proposal to enforce a 25 percent tariff on various South Korean exports, including vehicles and industrial products.

Seoul officials are expected to argue that partnership in shipbuilding can be mutually beneficial, potentially easing the impact of tariffs on key South Korean industries like Hyundai and Kia cars and LG appliances. The two sides are also eyeing substantial purchases of American liquefied natural gas by South Korea as part of a new trade framework.

Ahn Duk-geun, South Korea's trade and industry minister, has highlighted shipbuilding's significance as a negotiating tool, expressing hope for meaningful cooperation in this area. Rather than retaliating with its own tariffs, South Korea has opted for discussions, positioning itself as a cooperative partner despite the looming trade threats. Meanwhile, South Korean finance minister Choi Sang-mok is anticipating meetings with U.S. Treasury Secretary Scott Bessent in Washington, aiming to foster dialogue amidst these challenging economic conditions.