Trump pledge to revive U.S. shipbuilding sparks expectations, concerns in Korea

U.S. President Donald Trump pledged on April 9 to revive the country’s declining shipbuilding industry with significant federal investment, raising expectations in Korea for expanded cooperation.

Korean shipbuilders, however, are calling for government-to-government negotiations to ensure stable orders, warning that chasing uncertain U.S. Navy contracts could come at the cost of more lucrative commercial deals.

Trump signed an executive order in Washington on April 9 aimed at restoring U.S. maritime dominance, stating, “We’re going to be spending a lot of money on shipbuilding.”

“We used to build a ship a day, and now we don’t do a ship a year,” he said while speaking at the White House.

The White House said the executive order calls for a national maritime strategy and directs agencies to explore expanding shipbuilding infrastructure using the Defense Production Act (DPA).

The law — first enacted during the 1950-53 Korean War to ramp up steel production — gives the president authority to order production of goods vital to national security and allocate funding. Trump invoked the DPA in 2020 to boost the production of medical equipment during the Covid-19 pandemic.

The White House emphasized the urgency of rebuilding maritime capacity in a statement posted to its website, noting that U.S. yards account for 0.2 percent of global ship output, compared to China’s 74 percent.

The Trump administration said it aims to expand the U.S.-flagged commercial fleet in the interest of protecting economic and national security.

The move has triggered renewed interest in Korean shipbuilding, with industry insiders eyeing opportunities in U.S. military and commercial vessel projects. Trump reportedly emphasized cooperation in the shipbuilding sector during his first phone call with acting President Han Duck-soo on April 8.

Korean firms are already engaged in maintenance and repair contracts for U.S. Navy vessels and are seen as strong candidates for future build orders.

Hopes are rising that if Washington tightens regulations on Chinese-built ships, global shipping companies may turn to Korean yards for high-spec vessels. Trump’s order also directs the U.S. Trade Representative to investigate China’s anticompetitive practices in the shipbuilding sector.

Still, Korean firms remain cautious. Korean shipbuilders stress the need for government-level talks to secure predictable volumes of work. Relying on small-scale MRO contracts awarded through open bidding offers limited profitability.

“It’s hard to justify keeping a dry dock worth 200 to 300 billion won [$205 million] idle for an uncertain maintenance job that brings in only 20 to 30 billion won,” said Choi Tae-bok, executive director of HD Hyundai Heavy Industries’ special ship division.

“We need clarity on order volumes and schedules to ensure long-term cooperation,” Cho said.

Shin Seung-min, an adjunct professor at the Korea Research Institute of Ships and Ocean Engineering and a retired Navy rear admiral, echoed the call for stronger governmental engagement.

“U.S. authorities need to guarantee at least two to three years’ worth of orders for this partnership to be viable,” Shin said.

“The issue should be addressed through intergovernmental negotiations, possibly alongside defense cost-sharing talks.”

BY OH SAM-GWON [kim.juyeon2@joongang.co.kr]