Trump Backs Hanwha in U.S. Navy Frigate Plans
In a significant announcement at Mar-a-Lago, U.S. President Donald Trump revealed plans to construct new frigates for the U.S. Navy, explicitly naming South Korea’s Hanwha Ocean as a preferred partner. This endorsement marks a pivotal moment in the competitive landscape of naval shipbuilding, particularly under the “Make American Shipbuilding Great Again” (MASGA) initiative. By prioritizing Hanwha, Trump signals a shift in focus toward domestic production and job creation, aligning with his administration’s economic goals.
Hanwha’s Strategic Advantage in Shipbuilding
Trump’s emphasis on Hanwha Ocean during his announcement highlights a strategic choice in the U.S. Navy’s shipbuilding plans. The decision is seen as favoring Hanwha over its rival, HD Hyundai, both of which are major players in Korea’s naval construction sector. While HD Hyundai is renowned for its advanced naval engineering, including the construction of high-end combat vessels, Hanwha has made significant strides by acquiring the Philadelphia shipyard, allowing for immediate production capabilities within the U.S.
Industry insiders suggest that the selection process is not solely based on technical prowess but rather on which company can best meet the Trump administration’s political and industrial priorities. An industry source noted, “When asked why Trump chose Hanwha, the answer is simple: it already owns the Philadelphia shipyard.” This acquisition positions Hanwha to deliver results quickly, aligning with Trump’s “America First” narrative that emphasizes domestic job creation.
As discussions around MASGA unfolded, both Hanwha and HD Hyundai were considered frontrunners. However, the urgency of U.S. shipbuilding needs, exacerbated by labor shortages and limited shipyard capacity, has made operational readiness a critical factor. Yang Uk, a military expert at the Asan Institute for Policy Studies, pointed out that the real bottleneck in U.S. shipbuilding is not technological but rather the manpower and construction capacity necessary to translate designs into actual vessels.
Implications for the Future of U.S. Naval Shipbuilding
Trump’s endorsement of Hanwha is seen as a strategic move to revive the Philadelphia shipyard, which could yield immediate political benefits. Yang emphasized that this decision reflects a broader goal of restoring American industry and jobs. “The Trump administration’s priority was an immediately operational production base in the U.S., and under that condition, Hanwha had a clear advantage,” he stated.
However, industry experts caution that Hanwha may face challenges in balancing its commitments. The company is tasked with building Korea’s next-generation KDDX destroyers while simultaneously producing frigates for the U.S. Navy. An industry source warned, “Handling both projects at the same time could place significant pressure on manpower and production management.” In contrast, HD Hyundai, with fewer active naval shipbuilding orders, may have greater flexibility to respond to future U.S. projects.
As the MASGA initiative evolves, HD Hyundai could still emerge as a strong contender. For now, Trump’s public endorsement has reframed the competition, underscoring that in today’s strategic environment, industrial preparedness and political alignment are just as crucial as technical excellence.
