The dialogue is part of Seoul’s attempts to seek better tariff conditions
Washington – South Korea and the United States have discussed a shipbuilding agreement that could include investments to modernize U.S. shipyards and greater assistance in repairing the U.S. naval fleet. The dialogue is part of Seoul’s attempts to seek better tariff conditions, according to government and industry sources cited by Reuters.
President Donald Trump, who has made revitalizing the obsolete U.S. shipbuilding industry a priority to keep pace with China, has repeatedly raised the idea of collaborating with the Korean shipbuilding industry. Today, China is the world’s largest shipbuilder. It also possesses the largest maritime combat force in the world, with 234 warships compared to the U.S. Navy’s 219, according to the Center for Strategic and International Studies.
“South Korea can use shipbuilding as leverage to gain an advantage in tariff negotiations,” said Kim Suk Kyoon, former commissioner of the Korean Coast Guard and maritime strategy expert.
Pressure on Seoul to reach an agreement on import tariffs has increased after Japan struck a trade deal with the U.S. this week. South Korean officials are in Washington for trade talks, although a high-level meeting scheduled for Friday has been postponed due to scheduling issues.
South Korea is the world’s second-largest shipbuilder, and a source with direct knowledge of the talks said that “any partnership should include South Korean companies investing in the U.S. and contributing more to repair and maintenance.”
South Korea’s proposal for a “Korea-U.S. Manufacturing Renaissance Partnership” in sectors such as shipbuilding has drawn strong interest from the U.S., as Washington has called for joint efforts to counter the growth of Chinese shipbuilding, according to Seoul trade officials who preferred to remain anonymous because they were not authorized to speak to the media.
The U.S. Treasury Department and the Office of the U.S. Trade Representative did not respond to requests for comment.
South Korea’s Ministry of Industry said the U.S. and Korea “are discussing ways to cooperate in manufacturing sectors, including shipbuilding,” but provided no further details.
