Posted on August 1, 2025
SEOUL,July 31 (Reuters) – A recent publication by Reuters highlights that South Korean Finance Minister koo Yun-cheol emphasized the significance of a shipbuilding collaboration initiative called “Make America Shipbuilding Great Again” in securing a tariff agreement between the U.S.and South Korea. This ambitious partnership, valued at approximately $150 billion, aims to revitalize the American shipbuilding sector with leadership from South Korean firms.
In an effort to negotiate more favorable tariff conditions,South Korean officials sought to engage President Trump through this shipbuilding alliance,which includes plans for refurbishing the U.S. Navy fleet amid rising competition from china’s naval expansion. Koo remarked during a briefing that “the most remarkable element of today’s agreement is the $150 billion cooperation package between South Korea and the U.S., known as MASGA.” He further noted that this project played a crucial role in reaching their current accord.
Koo and his team met with President Trump at the white House to finalize terms aimed at reducing tariffs on imports from South Korea before an impending August 1 deadline set by trump himself. During their discussions, Trump expressed his desire for rapid progress in building ships domestically under this new partnership.The MASGA initiative encompasses several key components: establishing new shipyards within the United States, training personnel in shipbuilding techniques, and maintaining vessels for the U.S.Navy as outlined by officials from South Korea’s government. However, experts caution that challenges persist regarding investments in american shipyards or constructing vessels there—issues such as sourcing essential materials like steel plates could pose significant hurdles.
In related news, Hanwha Group—a major player in defense and shipbuilding—has been making strides within the U.S. market. Last year, its subsidiaries Hanwha Systems and Hanwha Ocean acquired Philly Shipyard based in Pennsylvania for $100 million as part of their expansion efforts into American waters.
Following news of this tariff agreement alongside their shipping partnership plans, shares of Hanwha Ocean surged by 13% on Thursday. Yet it’s worth noting that despite these gains reflecting optimism about future investments in U.S.-based operations, hanwha Systems reported a staggering 60% drop in second-quarter operating profits due to expenses incurred during its acquisition of Philly Shipyard.
