'MASGA' dead in the water? Essential regulatory changes languish in committee

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'MASGA' dead in the water? Essential regulatory changes languish in committee

Published: 11 Aug. 2025, 17:58 Updated: 27 Aug. 2025, 18:37

Audio report: written by reporters, read by AI

A ship commissioned by the U.S. government is under construction at the Hanwha Philly Shipyard in Philadelphia on July 16. [JOONGANG ILBO]

U.S. regulatory changes seen as critical to the “Make American Shipbuilding Great Again” (MASGA) project — a central element in the Korea-U.S. customs accord — are moving slowly.

Since the 119th Congress convened in January, three shipbuilding-related bills have been introduced, according to the U.S. Congress on Monday: the Ensuring Naval Readiness Act, which would amend the Byrnes-Tollefson Amendment that bans overseas construction or repair of U.S. naval vessels; the Merchant Marine Allies Partnership Act, which would amend the Jones Act's domestic construction requirement for U.S.-flag commercial vessels; and the SHIPS for America Act, which would give tax benefits to investors in U.S. shipyards.

However, only the Merchant Marine Allies Partnership Act has advanced. The naval readiness bill is sitting in the Senate Armed Services Committee, and the SHIPS for America Act has been referred to the Senate Committee on Commerce, Science and Transportation and a House subcommittee on the Coast Guard and maritime transportation — with no hearings scheduled. All three measures remain in the earliest stage of the U.S. legislative process, well off any floor vote and presidential signature.

While the slow progress is partly due to the limited legislative output — only 31 bills have been enacted so far this Congress — and the difficulty of overturning decades-old regulations, the Korean shipbuilding industry sees the pace as troubling, especially after U.S. President Donald Trump declared in February that he intended to revive U.S. shipbuilding.

“There is concern that companies could be pressured into investing in the United States while still constrained by existing regulations, despite Korea’s pledge of the $150 billion MASGA project" for Korea-U.S. cooperation in the shipbuilding sector, a shipbuilding industry insider said.

A "MASGA" baseball cap is seen in this photo released by the presidential office on Aug. 3. The slogan was created by Seoul's Ministry of Trade, Industry and Energy to concisely convey the goal of cooperation in the shipbuilding sector during the recent Korea-U.S. tariff negotiations, and the Korean negotiating team prepared this hat and a large panel for presentations during the talks. [YONHAP]

Industry observers point to domestic factors in the United States. The American Federation of Labor and Congress of Industrial Organizations’ metalworkers division has opposed the use of allied shipyards since last year, under the previous Joe Biden administration, arguing that it threatens jobs and security.

“U.S. politicians cannot ignore union pressure, so it will take time to gather enough votes to pass such bills,” said Rhee Shin-hyung, a professor of naval architecture and ocean engineering at Seoul National University.

National security and military confidentiality are also factors.

A ship under construction is seen at Hanwha Ocean's Geoje plant in Geoje, South Gyeongsang, on July 31, the day the Korea-U.S. trade negotiations concluded. [YONHAP]

“The U.S. makes decisions based strictly on its own security. Even with allies, there is little reason to rush a law change that could risk leaks abroad concerning weapons systems on naval vessels,” said an executive at a shipbuilding firm, who spoke on condition of anonymity.

Some analysts noted that U.S. concerns may be heightened by the fact that Korean shipbuilding workers have in recent years been recruited by Chinese shipyards.

“The fact that the need for shipbuilding support legislation is being discussed in the U.S. Congress is significant,” said Yang Jong-seo, senior researcher at the Korea Eximbank Overseas Economic Research Institute. The Korean government should work to ensure U.S. investment becomes an opportunity for domestic shipbuilders.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM HYO-SEONG [[email protected]]