South Korea Seeks Shipbuilding Partnership to Avert US Tariff

South Korea is intensifying efforts to finalize a trade agreement with the United States before the August 1 deadline to avoid a 25% tariff on Korean exports, primarily automobiles. Central to these negotiations is South Korea's proposal for a shipbuilding partnership, including a multi-billion dollar project dubbed “Make American Shipbuilding Great Again,” aimed at fostering bilateral cooperation in a sector where Korea holds global leadership. South Korean officials, including Finance Minister Koo Yun-cheol, are engaging in last-ditch talks with US counterparts, emphasizing collaboration not only in shipbuilding but also in semiconductors and batteries, while seeking tariff reductions on key exports. This move comes amid similar US agreements with Japan and the EU, which have increased pressure on Korea to offer substantial incentives, potentially including a $100 billion investment package. Both countries acknowledge strong US interest in revitalizing its manufacturing base, particularly in shipbuilding, and have agreed to work on mutually acceptable terms to solidify this cooperation. The negotiations are critical as they could shape the future of US-Korea trade relations and impact the broader economic landscape in the region.