Japan offers shipbuilding support to US amid tariff tensions: Report

Japan has proposed cooperating with the US on shipbuilding as part of ongoing trade negotiations, Jiji Press reported Monday, citing sources.

The move comes as Washington, under President Donald Trump's administration, seeks to rebuild its shipbuilding industry to counter China's growing dominance in the sector.

Tokyo aims to use technical assistance in shipbuilding as a bargaining chip to ease US tariffs, as Japan faces a 25% tariff on auto exports and a 24% tariff on various other goods.

China currently leads global ship construction with a 48.9% market share, followed by South Korea with 28.5% and Japan with 15.6%, according to Japanese government data.

The US, once a global shipbuilding leader, now lags behind in the sector.

Separately, Japanese aircraft component manufacturers are preparing for possible additional US tariffs.

Such levies could pressure Boeing to pass on costs to its Japanese suppliers, who produce around 35% of the 787 Dreamliner, according to the report.

Key suppliers include Mitsubishi Heavy Industries, Kawasaki Heavy Industries, Subaru Corp., IHI Corp. and Toray Industries.

As the components are produced in Japan, Boeing pays the tariffs upon import, potentially complicating the critical aerospace supply chain between the two allies.