Trump’s ‘Make Shipbuilding Great Again’ Order

The United States was once a world leader in both commercial and naval construction, but has fallen far behind its main rival China.

President Trump has now promised to reverse this, declaring in an address to Congress on Tuesday that he would "resurrect" the sector and create an Office of Shipbuilding in the White House.

(by Mallory Shelbourne, USNI News) – The Trump administration wants a sweeping government-wide overhaul of the U.S. commercial and military maritime sectors in an effort to catch up to China’s [currently] unrivaled shipbuilding capacity, according to draft documents obtained by USNI News.

The draft of an executive order, dated Feb. 27, calls on administration officials to create a maritime action plan over the next six months to revamp the American maritime industry.

“The United States has always been a maritime nation, but today China’s shipbuilding sector has established a position of dominance in the global market through unfair non-market practices, creating over 200 times the capacity of the U.S. shipbuilding industry,” reads a draft White House fact sheet accompanying the draft order.

The order will create a new maritime industrial base office within the White House’s National Security Council to lead the effort. Trump announced the new office on Tuesday night during his joint address to Congress.

“To boost our defense industrial base, we are also going to resurrect the American shipbuilding industry, including commercial shipbuilding and military shipbuilding. And for that purpose, 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 said.

“We used to make so many ships. We don’t make them anymore very much, but we’re going to make them very fast, very soon. It will have a huge impact.”

Multiple cabinet secretaries – including the U.S. Trade Representative and the heads of the departments of Defense, Commerce, State, Transportation, and Homeland Security – have six months from when the EO is signed to provide Trump with the maritime action plan, according to the draft.

Key figures running the effort include Ian Bennitt, a former Capitol Hill staffer who is currently serving as a special assistant to the president and the senior director of maritime and industrial capacity, and Cameron Humphrey, another former Hill aide who is now the director of maritime and industrial capacity, according to their LinkedIn accounts.

The maritime action plan must include a wide range of items, including a probe into China’s “unfair targeting of maritime logistics, and shipbuilding sectors,” the creation of a maritime security trust fund that could put money toward a shipbuilding financial incentives program for the next nine years and the creation of maritime opportunity zones to promote shipbuilding investment.

“As the leading economic and geopolitical power in the world, the United States needs a flexible funding source – akin to but distinct from a sovereign wealth fund – that is capable of underwriting our affirmative vision,” reads a section in the EO about the trust fund. The proposal wants to use tariff and tax money to build up the fund.

The plan also calls on the Department of Homeland Security to impose the Harbor Maintenance Tax on foreign cargo and certify that carriers offloading foreign cargo in Mexico or Canada pay the relevant charges and another 10 percent fee, according to the executive order language.

“The Secretary of Homeland Security shall take immediate action to require all foreign origin cargo to clear the Customs and Border Patrol (CBP) process at a U.S. port of entry for security and collection of all applicable customs, taxes, tariffs, fees, interest, and other charges,” reads the draft EO.

The maritime action plan should also include a proposal to revamp the acquisition process, according to the draft. The Department of Government Efficiency, the new agency also known as DOGE that is guided by billionaire Elon Musk, must start a review within three months of Trump signing the executive order. DOGE will assess acquisition processes for both departments of Defense and Homeland Security and give the president a blueprint for better procurement methods. DOGE must evaluate “specifically unaccountable Navy requirement officers,” according to the fact sheet.

The order also includes language similar to the Shipyard Accountability and Workforce Support proposal, also known as SAWS, a Navy-crafted plan seeking to tackle the rising cost of submarines. Specifically, the White House document calls for the Navy to “increase wages for nuclear shipyard workers through innovative contract changes using existing funds.” …

The executive order would kick off a new 45-day shipbuilding review to assess delays and increased costs for submarine, unmanned systems and surface ship programs. The call for that review comes nearly a year after former Navy Secretary Carlos Del Toro unveiled the results of his own 45-day shipbuilding review that concluded most of the Navy’s major shipbuilding programs are running behind schedule. …

Published at U.S. Naval Institute News (USNI) on March 5, 2025. Reprinted here in part for educational purposes only. May not be reproduced on other websites without permission.

Questions

1. For what reason is President Trump planning a government-wide overhaul of the U.S. commercial AND military maritime sectors?

2. Which cabinet secretaries will be involved in the overhaul?
b) What mandate will they receive once President Trump’s executive order is signed?

3. How has China come to dominate the shipbuilding sector?

4. What will Trump’s executive order create to lead the effort?

5. List 3 items to be included in the maritime action plan.

6. In addition to building ships, what does the plan call on the Department of Homeland Security to do?

7. What will the plan require the DOGE team to do?

8. Read the “Background” and watch the videos under “Resources.” What inspires you most about President Trump’s maritime action plan?

Background

US to also impose fees on ships linked to China:

Any ship built in China or flagged there will face a fee when it docks in the U.S.

That’s according to a draft executive order seen by Reuters on March 6.

What’s more, the order calls on allies to do the same, or risk retaliation.

The U.S. also plans to impose tariffs on Chinese cargo-handling equipment.

It’s all part of moves by the Trump administration to revive domestic shipbuilding, and loosen China’s grip on the wider marine sector.

The order says the national security of the U.S. is endangered by China’s “unfair trade practices in the maritime, logistics, and shipbuilding sectors”.

The U.S. Trade Representative’s office last month proposed fees of up to $1.5 million for Chinese-built ships entering American ports.

That followed a probe into China’s domination of global maritime and logistics businesses.

Separately Thursday, Trump commended French shipping giant CMA CGM for saying it would invest $20 billion in the U.S.

(from a March 6, 2025 Reuters article)

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