Navigating Tariffs: South Korea's Strategic Shipbuilding Moves

South Korea's Minister of Trade, Ahn Duk-geun, expressed the importance of shipbuilding as a strategic negotiating tool with the U.S. amid impending tariffs. President Trump discussed potential energy deals and military cost-sharing with South Korean leaders, amid efforts to strengthen economic and security alliances.

South Korea is leveraging its shipbuilding expertise as a strategic negotiating tool in discussions with the United States over impending tariffs. Trade and Industry Minister Ahn Duk-geun highlighted the sector's potential importance during talks with U.S. officials, acknowledging the influence of President Trump's administration's interest in shipbuilding cooperation.

The discussion comes as a 25% tariff on South Korean imports is set to take effect, which could severely impact South Korean exports, particularly automobiles. Ahn emphasized South Korea's preference for negotiation over retaliation, as the government seeks to reduce tariff rates while maintaining strong economic ties with the U.S.

Meanwhile, President Trump has mentioned defense cost-sharing as part of broader negotiations, though South Korean officials maintain that these talks are separate from tariff discussions. In efforts to bolster its economy, South Korea announced emergency support measures for its auto sector, aiming to boost domestic demand amid international trade challenges.

(With inputs from agencies.)