Japan and U.S. to Sign Memorandum on Shipbuilding Cooperation

October 27 ------ Japan is prepared to sign a memorandum with the United States providing additional details on the investment in shipbuilding that was continued in the countries trade talks. The Yomiuri Shimbun news outlet reports the signing is likely to happen on Monday, October 27, time to Donald Trump’s visit to Japan, which will also see the two countries’ leaders sign a memorandum for greater cooperation.

Japan committed to an investment of $550 billion in the United States during its prolonged trade talks with the Trump administration. Like South Korea, Japan dangled investment and cooperation with its shipbuilding industry as one of the elements to win a more favorable trade agreement. While Japanese shipbuilding has seen its market share slip dramatically in the past two decades, it still remains the world’s third-largest shipbuilder, and the government is providing financial support for projects developing new technologies for shipping.

The Yomiuri Shimbun reports the new agreement calls for the formation of a Japan-U.S. shipbuilding working group that will focus on investments that can be made to make the shipbuilders more efficient and competitive. They call for considering standardizing ship design and parts, and possibly having Japan design parts that could be produced in the United States. By standardizing designs, they propose that the countries could repair each other’s ships. Another part of the cooperation focuses on new technologies. The report cites the use of AI to improve ship design and functionality.

The Japanese government has called for large investments into its shipbuilding industry. Last week, the country’s shipbuilders’ association, which represents 17 leading companies, said the companies were prepared to invest approximately $2.3 billion using their own financing. They are calling for the government to provide the remainder to reach the goal of a $6.5 billion investment in the industry by 2035.

The government views shipbuilding as a critical sector. It is anxious to combat China’s dominance of the sector, and working with the U.S. could help to increase market share. The U.S. Navy has occasionally used Japanese shipyards to make repairs on vessels. Japan’s Mitsubishi Heavy Industries highlighted in May 2025 that it was completing the first large-scale maintenance contract bid on and won for a U.S. Navy vessel. It was part of the Navy’s strategy to make more repairs locally for forward-deployed vessels.

Japan remains a builder mostly of containerships, dry bulk, and tankers, with it receiving approximately 8 percent of global shipbuilding orders in 2024.

Source: maritime-executive.com