South Korea leverages shipbuilding in U.S. tariff talks

South Korea is utilizing its advanced shipbuilding industry as a key negotiating tool in discussions with the United States regarding impending tariffs, particularly a 25% tariff that could adversely impact its automotive exports. Trade and Industry Minister Ahn Duk-geun emphasized the strategic importance of shipbuilding cooperation, which has garnered significant interest from the Trump administration. While negotiations focus on tariff reductions, Ahn noted that discussions about defense cost-sharing for U.S. military protection are being handled separately. The South Korean government is committed to a negotiation strategy rather than retaliation, given its heavy reliance on trade. As part of its response to potential economic challenges, South Korea has also announced emergency support measures for its auto sector. Additionally, trade envoy Cheong In-kyo is in Washington to explore energy deals and further shipbuilding collaboration.