Trump Launches Bold Initiative to Revive U.S. Shipbuilding and Challenge China’s Maritime Dominance

In a move to reassert American maritime strength and industrial leadership, President Donald Trump announced the creation of a new White House Office of Shipbuilding and a suite of tax incentives for domestic shipbuilders during his recent joint address to Congress earlier this month.

“I am announcing tonight that we will create a new Office of Shipbuilding in the White House and offer special tax incentives to bring this industry home to America where it belongs,” Trump announced to loud applause.

The announcement signals a dramatic policy shift aimed at revitalizing America’s ailing shipbuilding sector, which has languished in recent decades. While the U.S. currently produces fewer than five commercial ships per year, China has surged ahead, building an estimated 1,700 ships annually. Trump’s initiative, backed by a forthcoming executive order, seeks to reverse this trend—and fast.

America’s Maritime Moment

The executive order, according to drafts reported by The Wall Street Journal, will introduce new revenue measures targeting Chinese vessels, alongside tax credits and grants designed to boost American shipyards. This is part of a broader strategy following a March 2024 petition from U.S. labor unions, which spurred an investigation by the U.S. Trade Representative (USTR). The probe—initiated under the Biden Administration—concluded that China’s shipbuilding dominance is powered by aggressive state subsidies, preferential sourcing mandates, and exploitative labor practices.

China’s global market share in shipbuilding has ballooned from less than 5% in 1999 to over 50% in 2023. China now also controls 95% of the world’s shipping container production and 86% of intermodal chassis manufacturing, giving it an outsized influence on global trade infrastructure. Meanwhile, the U.S. has tumbled from its position as a maritime superpower in 1975—when it built more than 70 ships per year—to its 19th-place ranking today.

To combat this imbalance, the USTR has proposed imposing steep fees on foreign vessels. The proposal includes charges up to $1 million per port entry for Chinese-operated ships and $1.5 million per call for Chinese-built ships, regardless of operator. Carriers could face additional penalties based on the percentage of their fleet orders placed in China.

This stance is meant to reflect that America’s maritime sector is not just an economic concern—but a national security imperative.

A Lifeline to U.S. Shipyards

The announcement was met with enthusiasm from domestic shipbuilders and maritime advocates.

“We applaud the creation of the White House Office of Shipbuilding,” said Matthew Paxton, President of the Shipbuilders Council of America. “The entire shipyard industrial base stands at the ready… to design and build America’s commercial and military fleets.”

Paxton emphasized the untapped potential of America’s existing shipyard infrastructure, arguing that full utilization could restore global competitiveness and generate thousands of high-paying, skilled jobs, in shipbuilding communities across the country.

Jennifer Carpenter, President of the American Maritime Partnership, echoed this sentiment. “We commend President Trump’s commitment to strengthening American maritime leadership… which reinforces the importance of a robust shipbuilding sector and U.S.-flagged fleet to our national, economic and homeland security.”

Navigating Choppy Waters

The announcement comes at a critical juncture for U.S. naval capabilities as well. A recent GAO report revealed that despite billions in investments, the U.S Navy’s shipbuilding programs continue to fall short of expansion goals, raising alarms about America’s readiness in an increasingly contested global seascape.

By aligning commercial shipbuilding with military needs, the new Office of Shipbuilding could bridge a longstanding gap in U.S. industrial policy—potentially transforming the nation’s maritime future.

With America’s maritime legacy at a crossroads, Trump’s shipbuilding initiative may prove to be a defining policy of a renewed industrial era—one that seeks to anchor American power back where it once thrived: on the seas.

We at the Herd Law Firm are proud to fight for seamen, maritime workers and passengers in all types of personal injury and death claims. As maritime personal injury attorneys (and sailors ourselves!) located in northwest Houston, we never waver in our commitment to help these maritime workers, passengers, and their families when they are injured or mistreated.

Source: Fox 29 News, WorldPorts.org, whitehouse.gov, Unsplash.com

3/22/25