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As Donald Trump’s tariff war escalates, South Korea finds itself within its impact zone. However, in key industries such as nuclear energy and shipbuilding, Korea-U.S. cooperation is gaining momentum. The small modular reactor (SMR) sector, in particular, is seeing deepening ties, driven by the U.S.'s rising power demands from AI growth and its efforts to counter China’s naval expansion.

HD Hyundai is working with TerraPower to optimize SMR component supply and manufacturing, while Hyundai Engineering & Construction is set to launch SMR projects in the U.S.. Doosan Enerbility is also partnering with leading American SMR firms such as TerraPower, NuScale Power, and X-energy, expanding its role in the U.S. nuclear supply chain.

In shipbuilding, the U.S.'s limited warship construction capacity has further reinforced the need for Korean shipbuilding expertise. The Center for Strategic and International Studies (CSIS) recently published a report recommending increased Korean investment in U.S. shipyards. Meanwhile, South Korean firms are emerging as key players in the Alaska LNG development project, further strengthening energy cooperation.

Analysts suggest that as Trump’s administration engages South Korea in negotiations on defense cost-sharing and tariffs, leveraging U.S. industrial needs in these sectors could enhance Korea’s strategic bargaining power. Capitalizing on these economic partnerships could provide South Korea with an edge in trade negotiations with the U.S.

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