By Abbas Nazil
In a bold move to reassert America’s presence in the global maritime industry, U.S. President Donald Trump has signed an executive order aimed at revitalizing the domestic shipbuilding and maritime sectors.
Announced from the Oval Office, the order titled: Restoring America’s Maritime Dominance, introduces a comprehensive Maritime Action Plan (MAP) designed to rebuild American capacity in both commercial and military shipbuilding.
The initiative addresses the stark disparity between U.S. and Chinese shipbuilding output, as China currently produces 74 percent of the world’s ships, compared to the U.S.’s mere 0.2 percent.
Trump emphasized the urgency of the initiative, stating, “We’re going to be spending a lot of money on shipbuilding. We’re way, way, way behind.”
The MAP aims to be a whole-of-government strategy developed within 210 days by the Assistant to the President for National Security Affairs, in collaboration with key cabinet departments and the Office of Management and Budget.
The goal is to consolidate regulatory, budgetary, legislative, and industrial strategies to revive the U.S. maritime industrial base, strengthen national security, and expand the U.S.-flagged fleet.
A cornerstone of the executive order is the creation of the Maritime Security Trust Fund, which will serve as the primary funding source for long-term maritime programs.
Managed jointly by the Director of OMB and the Secretary of Transportation, the trust fund is to be financed through targeted tariffs, port fees like the Harbor Maintenance Fee, and other tax revenues.
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This financial backing is expected to stabilize funding for critical infrastructure upgrades, workforce training, and shipbuilding projects.
The fund will also support a Shipbuilding Financial Incentives Program to attract private investment.
The order also directs the United States Trade Representative to address anticompetitive practices in Chinese shipbuilding and recommends imposing tariffs on Chinese-made ship-to-shore cranes and cargo equipment.
Notably, the U.S. produces none of the containers or cranes used in global trade, while China accounts for 96 percent and 80 percent respectively.
Industry stakeholders have responded positively. Matthew Paxton, President of the Shipbuilders Council of America, lauded the initiative as a transformative step toward revitalizing U.S. shipbuilding.
Eastern Shipbuilding Group and the American Maritime Partnership also expressed support, citing economic and national security benefits.
Additionally, the executive order proposes the creation of Maritime Prosperity Zones to encourage domestic and allied investments.
It calls for a review of Arctic maritime security strategies and mandates improvements in mariner education, including upgrades to the U.S. Merchant Marine Academy.
The establishment of a new Office of Maritime and Industrial Capacity at the National Security Council is to oversee these efforts, marking a historic push to reestablish America’s maritime strength.
