Ahn Duk Geun, South Korea's minister of trade and industry, said that the potential for cooperation with Washington on the shipbuilding front is "a very important card" when negotiating with the U.S. about its tariffs.

U.S. president Donald Trump called South Korean interim leader Han Duck Soo late Tuesday night to discuss shipbuilding, and possible energy deals. Trump hailed the call as a "great one" a day ahead of a 25% tariff imposed on their Asian ally.

The Minister of Trade, Industry, and Energy Ahn, who cited Trump's phone call with Han, told the parliament that "since President Trump and the Trump Administration are showing great interests in shipbuilding cooperative, we believe the shipbuilding will be an important negotiating tool for us."

South Korea, a U.S. ally, is a major player in the global shipbuilding industry. Trump has expressed concern about how his country is falling behind in this sector which is also dominated largely by China.

Ahn, however, warned that U.S. Tariffs would have a "very adverse" impact on South Korean Exports like Automobiles. He reiterated that the government will focus on negotiations with Washington.

Yonhap News Agency quoted a senior official from the office of Acting President Han as saying that the main priority in negotiations with the U.S. is to lower tariff rates.

Trump told Han that he spoke to him about South Korea paying for a "big deal" of U.S. protection. This could indicate that the cost of defence is part and parcel of a wider agreement, not just about trade or tariffs.

Trump has pressed allies, including South Korea, to pay more money for American troops stationed there.

According to Yonhap, the official in Han's office said that the issue of defense costs was not related to tariff negotiations.

The South Korean government announced on Wednesday that it would be implementing emergency measures to support its auto industry, including tax reductions and subsidies in order to increase domestic demand.

The top South Korean trade envoy, Cheong In-kyo, is in Washington, meeting with top U.S. officials, including Trade Representative Jamieson Greer.

Cheong stated that he will negotiate with Washington officials about a possible energy deal for Alaska, and a cooperation in shipbuilding.

Ahn, when questioned by opposition legislators about whether the government is giving away too much, promised to protect national interests.

"We may have lost some battles but we did not lose a war." He said, "We will not also lose this war." (Reporting and editing by Ju-min Park)

(source: Reuters)