South Korea Offers Billions to Revive U.S. Shipbuilding

South Korea has proposed a sweeping shipbuilding partnership with the United States, hoping to avoid 25% tariffs as trade negotiations with Washington reach a critical stage.

Seoul’s Proposal

According to Yonhap News Agency, Seoul is pitching the program as "Making American Shipbuilding Great Again" (MASGA). While specific details remain limited, South Korea’s presidential office confirmed the offer in a statement to Reuters.

• The plan reportedly includes multi-billion-dollar investments in U.S. shipbuilding facilities, potentially worth trillions of won.
• Korean shipbuilders , the world’s second-largest behind China, would provide financial support and technical expertise.
• The initiative aligns with the Trump administration’s push to revitalize U.S.-flag shipping and counter China’s dominance in global shipbuilding.

U.S. Maritime Ambitions

The Trump administration has prioritized maritime competitiveness. Earlier this year, it announced new initiatives to rebuild the U.S. fleet and expand shipbuilding capacity.

• The push recently gained momentum when CMA CGM re-registered a 9,300-TEU container ship under the U.S. flag, making it the largest U.S.-flagged merchant vessel.
• However, questions remain after the sudden departure of the head of a newly created White House office overseeing the initiative, with oversight shifted to the Office of Management and Budget.

Trade Talks on the Clock

• Negotiations between U.S. and South Korean officials are set to continue this week.
• Without a deal, the U.S. will impose 25% tariffs on South Korean goods starting August 1.
• Political infighting in Seoul has already delayed a potential trade accord, even as Japan and the EU have finalized their own deals with Washington.

Source: FreightWaves