In brief
Facing a potential 25 percent tariff from the U.S., South Korea is strategically leveraging its robust shipbuilding industry to negotiate trade terms with President Trump, as both nations prepare for upcoming talks.
As South Korea gets ready for critical trade discussions with the United States next week, officials are keen to showcase the nation’s thriving shipbuilding sector as a bargaining chip with President Trump. As the world’s second-largest shipbuilder, only behind China, South Korea hopes to leverage this capability in a strategy to mitigate the looming threat of a 25 percent tariff on its key exports, including Hyundai and Kia automobiles, steel, aluminum, and LG appliances.Officials emphasize that President Trump’s expressed interest in revitalizing the U.S. shipbuilding sector makes South Korea’s maritime expertise a potential asset in negotiations. "Shipbuilding will act as a crucial point in our discussions,” noted Ahn Duk-geun, South Korea’s trade and industry minister, addressing Parliament recently.In addition to shipbuilding discussions, a new trade agreement is expected to encompass significant purchases of American liquefied natural gas, which Seoul hopes will work to reduce its trade surplus with the U.S. South Korea’s finance minister, Choi Sang-mok, also anticipates discussions with Treasury Secretary Scott Bessent during their upcoming meeting in Washington.Unlike larger nations like China and members of the EU, South Korea has opted not to retaliate against U.S. tariffs with its own duties. Instead, the country has sought cooperative dialogue with the Trump administration in hopes of mitigating economic impacts.
