South Korea is using its strong position in the global shipbuilding industry as a key bargaining chip in ongoing tariff negotiations with the United States, according to Trade and Industry Minister Ahn Duk-geun.
During a session in Parliament on Wednesday, Ahn emphasized the importance of the shipbuilding sector in South Korea’s negotiations with Washington.
“The shipbuilding sector is a very important card for us,” he stated, referring to the recent conversation between U.S. President Donald Trump and South Korean interim leader Han Duck-soo.
This call, made on Tuesday, focused on possible energy and shipbuilding collaborations, just one day before the U.S. was set to impose a 25% tariff on South Korean goods.
Ahn highlighted that the Trump administration has shown significant interest in shipbuilding cooperation, underscoring its role as a potential avenue for South Korea to counterbalance the looming tariffs.
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The U.S. has been increasingly concerned about falling behind China in the shipbuilding sector, making this partnership even more crucial.
Despite these developments, Ahn warned that the proposed tariffs could severely impact South Korean exports, especially in sectors like automobiles. In response, the South Korean government has emphasized its priority of negotiating tariff reductions with the U.S., rather than retaliating with its own trade barriers.
The discussions also touched on defense issues, with Trump mentioning the costs of U.S. military protection in South Korea. However, a senior official from Han’s office clarified that military costs were separate from tariff talks.
In addition to focusing on tariffs, South Korea is exploring potential energy deals and deeper cooperation in shipbuilding as part of its broader negotiations. Seoul’s top trade envoy, Cheong In-kyo, is currently in Washington to meet with U.S. officials and further discuss these matters.
As the negotiations continue, Minister Ahn assured lawmakers that South Korea would prioritize national interests, stating, “We might have lost a few battles, but we will not lose this war.”
