Trump Approves Building US Warships Abroad; 'MASGA' Should Launch in Korea

U.S. President Donald Trump has signed a national security presidential memorandum that permits foreign shipyards to construct up to two U.S. warships outside the United States. This decision circumvents the Burns-Tollefson Act, which generally prohibits the foreign construction of U.S. naval vessels, by invoking an exception for "national security needs."

For South Korea, this presents a significant opportunity to advance its "MASGA" project, a collaboration between Korean and U.S. shipbuilding industries that has been in development since last year. The memorandum stipulates that foreign companies must either establish new shipyards in the U.S. or acquire a majority stake in existing American shipyards to be eligible. Subsequent construction must occur within the U.S., with conditions including technology transfer and training for American workers.

However, the path forward is fraught with challenges. The U.S. Congress holds the purse strings, and the House of Representatives has already passed a defense spending bill for fiscal year 2027 that prohibits using naval funds for foreign construction. The Senate's version offers limited exceptions only for non-combat vessels. Beyond congressional hurdles, South Korea faces stiff competition from Japan, which has a long-standing relationship with the U.S. Navy through maintenance and repair services at bases like Yokosuka and is actively leveraging its alliance with the U.S. to secure contracts.