The Trump administration is preparing an executive order aimed at revitalizing the US shipbuilding industry and countering China’s influence in the global maritime sector.
According to a draft summary reviewed by The Wall Street Journal, the order includes 18 proposed measures designed to boost domestic shipbuilding, increase investment in the sector, and impose fees on Chinese-built ships and cranes entering US ports.
Among the proposed initiatives is the creation of a new office within the White House dedicated to shipbuilding, as well as the establishment of a Maritime Security Trust Fund to support investments in the industry. Additionally, tax incentives and grants for US shipbuilders and higher wages for nuclear-shipyard workers are included in the proposal.
The order also seeks to impose fees on Chinese-built ships and cranes operating in US ports, with the revenue directed toward strengthening the domestic maritime sector. These measures align with bipartisan concerns in Washington over the decline of US shipbuilding and the increasing reliance on foreign-built vessels. The US Trade Representative’s office has previously proposed similar policies, but the executive order would allow the administration to bypass legislative hurdles and implement them more swiftly.
China currently dominates global shipbuilding, accounting for nearly 70% of new container ship capacity under construction. Former US President Joe Biden’s administration had also raised concerns about China’s role in the maritime industry, arguing that the country’s industrial policies give it an unfair competitive advantage. However, Chinese officials have denied these claims, attributing their dominance to market efficiency rather than government intervention.
While some industry officials support the administration’s efforts to strengthen the US maritime sector, others have expressed concerns about potential economic consequences. European and Asian shipping companies outside of China have pushed back against the proposed fees, warning that they could increase shipping costs and disrupt global trade. Soren Toft, CEO of Mediterranean Shipping, the world’s largest container shipping company, stated that such fees could raise shipping costs on some US-Asia routes by up to $800 per 40-foot container. These additional costs would likely be passed on to importers and consumers.
Despite these concerns, the Trump administration is moving forward with its plans. President Trump confirmed during a recent congressional address that his administration intends to establish an office of shipbuilding in the White House and introduce tax incentives to encourage domestic production. The executive order is expected to be announced soon, potentially as early as Tuesday evening.
The Wall Street Journal, Reuters, and Bloomberg contributed to this report.
