Lee Gyu-lee is a business writer at The Korea Times, focusing primarily on IT & telecommunications, the Ministry of Trade, Industry and Energy and KOTRA. Prior to this, she has covered a wide range of cultural news, from film, television and K-pop to lifestyle and fashion.
Korea likely to leverage shipbuilding in tariff talks with US
A container ship built by Samsung Heavy Industries / Courtesy of Samsung Heavy Industries
By Lee Gyu-lee
Industry, trade ministers extend stay in Washington for last-minute negotiations
Korea’s world-class shipbuilding sector is emerging as key leverage in the country's tariff negotiations with the U.S., which seeks to enhance its shipbuilding capacity.
Top negotiators from Korea are highlighting what Korea can offer to help the U.S. develop its shipbuilding industry in one of their available bargaining chips, with just a few days remaining before the U.S. threatens to impose a 25 percent “reciprocal” tariff on Aug. 1.
Korea's presidential office held a government-wide meeting of officials involved in the tariff talks on Saturday, and implied afterward that it would leverage the shipbuilding sector in the negotiations.
“We confirmed a high level of interest from the U.S. in shipbuilding, so we decided to come up with proposals that the two sides can reach a deal about, including cooperation in shipbuilding,” the presidential office said in a statement after the meeting presided by presidential chief of staff for policy Kim Yong-beom and National Security Adviser Wi Sung-lac.
After another meeting the previous day, Kim also said in a press briefing, “Both sides reaffirmed the importance of cooperation in strategic manufacturing sectors, including shipbuilding and semiconductors, and agreed to work out concrete plans for such collaboration going forward. They also reiterated their commitment to finding a mutually beneficial resolution before Aug. 1."
U.S. President Donald Trump has repeatedly emphasized the importance of strengthening U.S. shipbuilding capacity since taking office. He has asked Korea and Japan to work together on rebuilding its shipbuilding industry to push back against China’s growing maritime influence. In April, he signed an executive order, "Restoring America’s Maritime Dominance," aimed at revitalizing the domestic maritime industries and workforce to promote national security and economic prosperity.
As Korea competes with China for the top spot in the global shipbuilding market, it is considered an ideal partner for the U.S.
Trade Minister Yeo Han-koo, right, shakes hands with U.S. Trade Representative (USTR) Jamieson Greer after talks at the USTR’s office in Washington, Friday (local time). Courtesy of Ministry of Trade, Industry and Energy
Aside from shipbuilding, Seoul is dialing up efforts to persuade Washington with all possible bargaining chips, intensifying the high-level discussions.
Even sensitive items like agricultural products are under discussion as the U.S. has repeatedly called on Korea to ease nontariff barriers. While there was speculation last week that the Korean government had decided not to discuss expanding imports of U.S. rice or importing beef from cattle older than 30 months, the presidential office confirmed, "agricultural products are on the negotiating list.” However, it did not mention which products are included in those discussions.
Since last week, Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo have been engaged in talks with U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer in Washington, extending their planned trip.
The industry minister even continued talks with Lutnick at the latter's residence on Friday evening (local time), according to the industry ministry.
The so-called "two-plus-two" meeting between the finance and trade ministers of the two countries, initially slated for Friday, were canceled a day before, with U.S. Treasury Secretary Scott Bessent citing an urgent schedule change.
This last-minute cancellation made Korea’s Deputy Prime Minister and Finance Minister Koo Yun-cheol return to his office from the airport.
The presidential office said Koo arranged a meeting with Bessent again this week, while Foreign Minister Cho Hyun will also visit Washington to meet Secretary of State Marco Rubio.
With the series of high-level talks scheduled, the government says it will increase its efforts to reach a deal before the deadline.
However, despite the all-out push, reaching a deal on a tight deadline remains challenging. With Trump and Washington’s negotiation team scheduled to travel to Europe to negotiate tariffs with the EU, it leaves only Wednesday and Thursday as practical options for in-person negotiations with Korea before the deadline.