by Lloyd's List
10 April 2025 (Lloyd's List) - US President Donald Trump has signed a sweeping executive order aimed at restoring American maritime dominance amid escalating trade tensions with China.
The order, titled "Restoring American Maritime Dominance," is seeking to rebuild the nation's struggling shipbuilding industry, which currently produces less than 1% of commercial ships globally, while China manufactures approximately half.
"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," Trump said.
The directive mandates federal agencies to develop a Maritime Action Plan within 210 days that will provide a strategy with specific actions to restore and create sustained resiliency for the American maritime industry.
"After being weakened by decades of government neglect, President Trump is prioritizing the revitalization of the US maritime industry to strengthen the nation's economic and national security as part of the America First Agenda," stated the White House accompanying the order.
Among the order's most significant provisions is the establishment of a Maritime Security Trust Fund to provide consistent funding for maritime programs.
The administration is also proposing a shipbuilding financial incentives program to boost private investment in US shipbuilding.
The order takes direct aim at China by directing the US Trade Representative to make recommendations regarding China's anticompetitive actions within the shipbuilding industry.
The agency has already drafted a proposal to impose exorbitant port fees on China-built ships and companies operating and ordering them. However, earlier this week, USTR Jamieson Greer implied that while the fees will still be implemented, they may be softened amid strong opposition from the business community.
The USTR is expected to submit its final plan to the White House by April 17.
Shipping companies have warned that if the port fees are enforced, they may reduce calls at US ports and instead reroute cargo through Canada and Mexico for onward transport into America.
In response, Trump’s executive order instructs the Secretary of Homeland Security to enforce collection of the Harbor Maintenance Fee on foreign cargo entering the US to prevent circumvention via the two neighbouring countries.
"This will put an end to a longstanding unfair practice, ensuring all cargoes entering the United States are assessed the proper applicable fees and generating additional revenue for investment into the maritime industry," the White House said.
The directive also calls for developing Maritime Prosperity Zones to incentivize investment in waterfront communities, modelled on Trump's "highly successful Opportunity Zone concept" from his first administration.
To address workforce needs, the order expands mariner training and education through investment in the US Merchant Marine Academy and a plan for expanding training opportunities.
It also aims to increase the fleet of commercial vessels trading internationally under the US flag.
The MAP will also develop a strategy to ensure security and leadership of Arctic waterways to address the growing presence of foreign nations in the region.
To demonstrate the importance of this initiative, Trump has established a new Office of Maritime and Industrial Capacity at the National Security Council in the White House.
Implementation of the order's provisions will depend on cooperation from Congress for funding and legislative changes, with the MAP expected to be delivered to the President by early November.
The order comes as tensions with China continue to rise and as the US seeks to strengthen domestic manufacturing and reduce supply chain vulnerabilities considered critical to national security.
