Trump Reportedly Plans Executive Order To Boost US Shipbuilding And Counter China's Maritime Lead

In an attempt to revive the U.S. shipbuilding industry and challenge China’s maritime dominance, the administration under President Donald Trump is reportedly preparing an executive order.

What Happened: The executive order includes 18 measures ranging from raising revenue through fees on Chinese-built ships and cranes entering the U.S. while creating a new office within the National Security Council to enhance the American maritime sector, per a draft summary reviewed by The Wall Street Journal.

The draft order also proposes wage increases for nuclear shipyard workers and an evaluation of government procurement processes, including those of the Navy, conducted by the Department of Government Efficiency (DOGE). The proposed measures also include imposition of fees on Chinese commercial vessels docking at U.S. ports.

The draft executive order proposes establishing Maritime Opportunity Zones and a Maritime Security Trust Fund to enhance investments. It also suggests that revenue from fees on Chinese cranes and ships at U.S. ports would fund domestic maritime investments.

In his address to Congress on Tuesday, President Trump announced a new Office of Shipbuilding in the White House providing special tax incentives to relocate this industry back to the U.S. “To boost our defense industrial base we are also going to resurrect the American shipbuilding industry, including commercial shipbuilding and military shipbuilding,” stated Trump.

Why It Matters: According to Veson data, China accounted for 75% of global shipping activities in 2024. Besides, support from the government in the form of subsidies, China used unfair practices to dominate the global shipbuilding industry, concluded a U.S. investigation under former President Joe Biden. The findings revealed that China employs financial support, barriers for foreign firms, forced technology transfer, and intellectual property theft to gain an advantage in shipbuilding. China denied any such malpractice, though.

Meanwhile, the U.S. shipbuilding industry has been grappling with challenges due to high costs, stringent security requirements, and limited capacity for scaling production.

Huntington Ingalls Industries HII declined 11.9% over the past month while General Dynamics GD lost 3% during the same period. Star Bulk Carriers Corp SBLK slid 0.77% lower over the past 30 days, as per Benzinga Pro.