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Red hat diplomacy: How a MAGA-inspired slogan saved Korea-U.S. tariff talks

Published: 01 Aug. 2025, 11:13 Updated: 01 Aug. 2025, 18:36

Korea's Industry Minister Kim Jung-kwan, left, shakes hands with U.S. Secretary of Commerce Howard Lutnick at the U.S. Department of Commerce in Washington on July 24. [NEWS1]

As tariff negotiations teetered on the brink of collapse, Korean officials reached for an unlikely lifeline: a shipbuilding revival plan named after a slogan from U.S. President Donald Trump.

The proposal — a joint initiative dubbed MASGA, short for "Make American Shipbuilding Great Again" — offered to revitalize U.S. shipyards with Korean capital and expertise. Korean officials say the pitch helped break the impasse in the stalled trade talks.

'Great idea'

On Sunday, Korean Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo unveiled the MASGA concept during a meeting in Washington with U.S. Commerce Secretary Howard Lutnick, widely seen as Trump's hard-line “tariff architect.”

The meeting came under tense circumstances after "2+2" talks involving Finance Minister Koo Yun-cheol and U.S. Treasury Secretary Scott Bessent were canceled at the last minute.

Members of the Korean negotiation team carry a presentation panel wrapped in a hotel tablecloth, with material explaining the ″MASGA″ (Make American Shipbuilding Great Again) project, which is credited with playing a decisive role in breaking the deadlock in the Korea-U.S. tariff negotiations, in front of the U.S. Department of Commerce building in Washington on July 24. [MINISTRY OF INDUSTRY, TRADE AND ENERGY]

Despite Lutnick’s reputation as a tough negotiator, Korean officials say he unexpectedly became a “key man” in the talks after being briefed on MASGA.

“Minister Kim came prepared with a presentation board explaining the MASGA initiative, and Lutnick reportedly responded, ‘Great idea,’ showing immediate interest,” a Korean official said.

U.S. President Donald Trump wears a ″Make America Great Again″ (MAGA) hat as he attends the commencement ceremony at West Point Military Academy in West Point, New York, on May 24. [REUTERS/YONHAP]

Hats and slogans

Aware of the U.S. President’s penchant for branding, the Korean delegation crafted a political narrative around the project. In a nod to Trump’s campaign slogan, "Make America Great Again," or MAGA, the delegation printed MASGA hats and presented photos of them to Lutnick to highlight the initiative’s political value.

“We made 20 MASGA hats,” said a senior official from the presidential office, underscoring the symbolic importance. The acronym and name were reportedly developed by junior staff at the Ministry of Trade, Industry and Energy’s shipbuilding division.

The team also created the MASGA display board locally in the United States to convey the proposal visually, hoping to impress Trump. The level of attention to political messaging was described as a carefully calculated gift, more than just an economic offer.

“We asked ourselves, what does Korea do best that no one else can? The answer was shipbuilding,” said Yeo.

A ship under construction is seen at Hanwha Ocean’s Geoje shipyard in Aju-dong, Geoje, South Gyeongsang, on July 31. [YONHAP]

From New York to Scotland

Negotiators pursued Lutnick relentlessly. After the initial meeting in Washington, Lutnick cited personal commitments and declined further formal talks. Undeterred, the Korean team traveled to Lutnick's New York home late at night. When they learned Lutnick would soon fly to Scotland, they followed him there too — meeting twice more.

It was during the Scotland meetings that Lutnick proposed the final fund size that would become the heart of the deal. Korea had initially suggested $100 billion, but Lutnick countered with $400 billion, eventually settling at $350 billion, according to officials.

“In negotiations, sincerity can move mountains. I believe our Scotland visit marked a turning point,” Kim later remarked.

Deputy Prime Minister and Finance Minister Koo Yun-cheol delivers a statement during a briefing on Korea-U.S. trade talks at the Korean Embassy in Washington on July 30. From left are Industry Minister Kim Jung-kwan, Finance Minister Koo, and Trade Minister Yeo Han-koo. [MINISTRY OF ECONOMY AND FINANCE]

Mad cow protests

Agriculture emerged as one of the toughest sticking points. Korea drew a firm red line around rice and beef, refusing U.S. demands to open those markets. To defend its position, the team leaned on an unconventional tool: emotional memory.

They carried photos from Korea’s 2008 protests surrounding bovine spongiform encephalopathy — commonly known as mad cow disease — which drew massive crowds in opposition to U.S. beef imports, and showed them to U.S. negotiators to emphasize the political sensitivity.

“We carried around photos of a million people rallying during the candlelight protests,” Yeo said. “We had to explain the sensitivities and political fragility of our livestock industry, and I believe that approach helped.”

The team also pointed out that Korea had already opened 99.7 percent of its agriculture market through the Korea-U.S. FTA.

Export-bound vehicles are lined up at Pyeongtaek Port in Gyeonggi on July 31. [YONHAP]

No win on autos and steel

Despite the breakthrough on shipbuilding, Korea came away empty-handed on cars and steel.

Korean negotiators had argued that unlike Japan and the European Union (EU) — which still face a 2.5 percent tariff on car exports to the United States — Korean automobiles already enter the U.S. duty-free under the FTA.

Citing that discrepancy, Korea requested a preferential rate of 12.5 percent, instead of the 15 percent applied to Japan and the EU. But Washington rejected the proposal, and Korea ultimately accepted the same 15 percent tariff on cars.

Efforts to reduce the steep 50 percent tariffs currently imposed on Korean steel and aluminum also failed.

“If the U.S. auto unions or politicians objected, we wouldn't have even gotten 15 percent,” Yeo said. “President Trump has strong personal convictions about steel tariffs,” he added.

Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance Koo Yun-cheol, Minister of Industry Kim Jung-kwan and Trade Minister Yeo Han-koo, who led the Korea-U.S. tariff negotiations, are seen upon returning to Korea via Terminal 2 of Incheon International Airport on Aug. 1. [NEWS1]

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM NAM-JUN [[email protected]]