US naval construction may shift to South Korean yards

Following an agreement to have naval vessels repaired at Hanwha Ocean in August 2024, US President-elect Donald Trump has signalled that the US could break with the Jones Act to have vessels constructed and maintained in South Korea, potentially taking work away from the US’ dwindling number of domestic yards.

“We don’t build ships anymore,” Trump told conservative radio host Hugh Hewitt last week. “And maybe we'll use allies, also, in terms of building ships. We might have to. We need ships. China's building, from what I'm hearing, every four days, they're knocking out a ship."

Some 14 US shipyards have gone out of business since the 1970s. Of those that remain, employees are rapidly ageing out of the labour pool, with few new recruits to replace them, and it is thought that with an acute shortfall of workers, there is diminishing prospect of scaling up production. “The US shipbuilding industry needs South Korea’s help and cooperation.

The latest on the issue from Trump echoes remarks made in November. “We are aware of Korea’s construction capabilities and should cooperate with Korea in repair and maintenance. I want to talk more specifically in this area,” he said.