- Trump is pushing for greater U.S. control in the Arctic, aiming to counter Russia’s dominance by expanding the U.S. icebreaker fleet.
- The Jones Act restricts foreign-built vessels, limiting opportunities for South Korean shipbuilders despite their expertise.
- Potential Jones Act amendments and a Russia-Ukraine war resolution could open doors for Korean shipbuilders in the long term.
U.S. President Donald Trump is determined to establish Arctic dominance, recognizing the need for more icebreakers to counter Russia’s stronghold in the region. With Russia operating 30 icebreakers compared to the U.S.’s three, Trump’s push includes expanding the fleet and even considering purchasing Greenland, reports Biz Chosun.
Trump’s Arctic Strategy
Trump has expressed a strong desire to increase U.S. influence in the Arctic, where Russia has significantly expanded its presence.
Reports indicate that Russia has grown its Arctic military bases from 8 to 21 since 2005, while NATO’s count has barely increased. The Wall Street Journal highlighted the growing gap, with Russia’s 30 icebreakers dwarfing the U.S.’s three.
To address this, Trump has ordered new icebreakers and floated the idea of purchasing Greenland to secure a strategic foothold in the region.
The Jones Act Barrier
Despite Trump’s ambitions, the Jones Act of 1920 remains a major hurdle. The law mandates that only U.S.-built, U.S.-flagged, and U.S.-crewed vessels can operate along U.S. coasts, effectively shutting out foreign-built ships. “Unless the Jones Act is amended or exceptions are enacted, orders can’t come to Korean shipyards,” noted a recent SK Securities report.
Additionally, icebreakers cost 30-50% more than standard vessels, making it more practical for the U.S. to rent icebreaking services from Russia rather than invest in its own fleet.
Pressure to Amend the Jones Act
There is a growing push within the U.S. to reform the Jones Act to improve competitiveness in the shipbuilding sector. The Heritage Foundation has called for its repeal, arguing that it “undermines the competitiveness of the U.S. shipbuilding and shipping industry.”
Former U.S. Ambassador Henry Haggard has also urged amendments to allow South Korean investment in U.S. shipyards.
Trump himself has acknowledged South Korea’s naval and shipbuilding expertise, telling South Korean President Yoon Suk Yeol, “I know that South Korea has world-class naval and shipbuilding capabilities. The U.S. shipbuilding industry needs South Korea’s help.”
Potential Opportunities for Korean Shipbuilders
If icebreaker orders increase, South Korea’s Hanwha Ocean and Samsung Heavy Industries are well-positioned to benefit. Hanwha has a strong track record in building icebreaking LNG carriers, while Samsung has worked on joint icebreaker projects with Russia’s Zvezda Shipyard.
Before facing Western sanctions, Russia was a key client, ordering eight icebreakers from Korean shipyards in 2021. A resolution to the Russia-Ukraine war could revive these orders, bringing a boost to South Korea’s shipbuilding industry.
Trump’s Arctic Ambitions Face Shipbuilding Hurdles
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Source: Biz Chosun
