South Korea proposes MASGA plan to dodge Trump tariffs
What's the story
In a bid to avert a potential 25% tariff rate, South Korea has proposed a shipbuilding partnership with the US. The proposal, dubbed Make American Shipbuilding Great Again (MASGA), is part of ongoing negotiations between the two countries. The details of the multibillion-dollar project are still unclear, but it highlights South Korea's efforts to secure an agreement amid rising global trade tensions.
Diplomatic engagement
US has strong interest in shipbuilding sector
The South Korean presidential office confirmed the US's strong interest in the shipbuilding sector. "We confirmed the US side's strong interest in the shipbuilding sector and the two countries agreed to work together to develop mutually acceptable terms that include shipbuilding cooperation," it said. This statement underscores a shared commitment between both nations to explore potential collaboration opportunities in this industry.
Strategic maneuver
Racing against time to strike deal
As Asia's fourth-largest economy, South Korea has been racing against time to strike a deal with the US. The urgency comes as Washington turns its attention toward the European Union and China. The US and EU announced an agreement that would impose 15% tariffs on most of its exports to America, including cars. This move puts even more pressure on South Korea to finalize a deal.
Domestic hurdles
South Korea pushing through despite challenges
Despite being one of the largest Asian economies without a deal, South Korea is determined to push through. The country's finance and foreign ministers are scheduled to meet their US counterparts this week. This meeting is part of a last-ditch effort to finalize negotiations before US President Donald Trump's August 1 deadline. However, internal political turmoil has slowed down these negotiations in recent times.