With U.S. shipbuilders holding less than 1% of global market share, Trump emphasized the urgency of revitalizing the sector: “Fixing this requires a long-term strategy with stable federal investment, boosting competitiveness of U.S.-built vessels, rebuilding manufacturing, and expanding the skilled maritime workforce.”
The executive order tasks multiple federal departments – including State, Defense, Commerce, Labor, Transportation, and Homeland Security – with developing actionable strategies to strengthen the U.S. shipbuilding industry.
While the administration avoided detailing a controversial proposal to impose additional charges on Chinese ships docking at American ports, officials confirmed the specifics would be released at a later date – a topic that has already sparked unease in global shipping circles.
The order also instructs the U.S. Trade Representative to explore tariffs on Chinese-origin ship cranes and other cargo equipment, including items with Chinese components or from companies under Chinese ownership.
To further fortify port security and fair trade, the Department of Homeland Security will implement port maintenance fees and develop measures to block shipping companies from bypassing these fees by offloading cargo in Mexico or Canada and transporting it overland into the U.S.
A key component of the initiative is the creation of a Maritime Security Trust Fund, which will draw from tariffs, fines, fees, and tax revenues to sustainably support U.S. maritime industry development.
The Shipbuilders Council of America welcomed the announcement, stating: “A robust U.S. shipyard industry is crucial not only for our economy but also for our national defense.”
China’s dominance in the shipbuilding sector has surged over the past two decades, growing from less than 10% of global market share to over two-thirds by 2024. In a striking comparison, China built more commercial vessel tonnage last year alone than the U.S. has produced since World War II.
Responding to these developments, China’s state-run Global Times criticized the U.S. efforts, saying: “The real divide is industrial. Globalization gutted America’s manufacturing backbone. Without steel mills, machine shops, and skilled labor, shipbuilding was bound to fall behind.”
Trump’s order marks a major push to reverse that trajectory – though success will depend on whether America can rebuild the industrial foundation necessary to compete on the high seas once again.
