The Trump administration has been announcing trade deals in recent days as a Friday deadline approaches for tariffs. One of the countries that's coming down to the wire is South Korea.
Shipbuilding is one factor in play with South Korea, the United States, and trade.
Local media reports that South Korea's finance minister will be meeting face-to-face with U.S. Treasury Secretary Scott Bessent on Thursday.
Right now, South Korea is facing tariffs of 25% on its exports to the U.S.
South Korean officials want to at least match the 15% tariffs that are now the level for both Japan and the European Union.
That's especially critical for South Korea's auto industry, which more than doubled its exports to the United States from 2021 to last year.
Right now, South Korea and Japan are close to each other in leading global auto exports to the U.S., while the EU is in third place.
But with a smaller economy, South Korea is unable to commit to the additional U.S. investments that Japan has promised as part of its trade deal, or the energy purchases the EU will make as part of its agreement.
That's where shipbuilding comes in.
Multiple media reports in South Korea say both sides are looking at a cooperative venture that would increase domestic shipbuilding production in the U.S. with the help of Korean companies.
Yonhap News reports Korea’s trade minister presented a proposal on Friday he called “Make American Shipbuilding Great Again.”
