South Korea Leverages Shipbuilding Strength in Trade Talks with the U.S.

South Korea is strategically focusing on its shipbuilding industry to negotiate with the U.S. in light of potential tariffs that could hit its exports. As a major ally to the U.S. and the world's second-largest shipbuilder, South Korea hopes to turn negotiations in its favor by emphasizing its capabilities while trying to mitigate the proposed 25 percent tariffs on exports like automobiles and electronics.

In advance of upcoming trade discussions with the United States, South Korea is seeking to utilize its strong shipbuilding sector as leverage. The country, which ranks as the second-largest shipbuilder globally, just behind China, is enthusiastic about presenting its achievements to President Trump. Officials believe this focus aligns with Trump’s agenda to revitalize the U.S. maritime industry while also providing a counter to the significant tariffs he plans to impose on South Korean goods, including Hyundai and Kia vehicles, as well as steel and aluminum products.

Ahn Duk-geun, South Korea's Minister of Trade and Industry, emphasized the importance of shipbuilding in the negotiations during a recent address to Parliament. He stated that the robust shipbuilding sector could serve as a valuable card in discussions, especially given President Trump's specific interest in cooperative measures within this industry. A new trade agreement is anticipated to include substantial purchases of American liquefied natural gas from South Korea, aimed at reducing the latter's trade surplus with the United States.

Choi Sang-mok, South Korea's Finance Minister, is also expected to meet with U.S. Treasury Secretary Scott Bessent in the coming week. Unlike other nations that have retaliated against Trump’s tariff threats, South Korea's strategy has leaned toward dialogue, seeking mutually beneficial outcomes early on in the negotiations.