Trump's Executive Order: A Game Changer for U.S. Shipbuilding and Global Maritime Power

The Trump administration is set to unveil an executive order aimed at bolstering the U.S. shipbuilding industry and countering China's dominance in the global maritime sector. The 18-point plan, expected to be announced during President Trump's address to Congress, seeks to revitalize the American shipbuilding industry, create jobs, and enhance national security. Here's a closer look at the key components of the plan and their potential impact on the global balance of power.



1. Imposing fees on Chinese-built ships: The executive order proposes levying fees on Chinese-built ships and cranes entering U.S. ports. This measure, ranging from $500,000 to $1.5 million per port call, aims to discourage the use of Chinese-built vessels and encourage the adoption of U.S.-built ships. Additionally, an extra fee of up to $1 million per port call will be imposed on Chinese-owned shipping companies (U.S. Trade Representative's office, February 2025).
2. Establishing a Maritime Security Trust Fund: The plan includes the creation of a dedicated funding source to support the U.S. shipbuilding industry. The Maritime Security Trust Fund will be used to offer tax credits, grants, and loans to domestic shipbuilders, fostering investment and job creation in the sector.
3. Creating a new office of shipbuilding: The White House will establish a new office within the National Security Council to lead a whole-of-government effort to strengthen the maritime industrial base. This office will be responsible for coordinating the various initiatives aimed at reviving the U.S. shipbuilding industry.
4. Increasing wages for nuclear shipyard workers: The executive order seeks to address the rising cost of submarines by increasing wages for nuclear shipyard workers through innovative contract changes using existing funds. This measure is intended to improve the competitiveness of the U.S. shipbuilding industry and attract top talent.
5. Reviewing government procurement processes: The Department of Government Efficiency, led by billionaire Elon Musk, will review government procurement processes, including those at the U.S. Navy. This review aims to identify inefficiencies and improve acquisition methods, ultimately benefiting the U.S. shipbuilding industry.
6. Developing a security strategy for the Arctic: The plan includes a directive to develop a security strategy for the Arctic, reflecting the growing importance of the region in global maritime trade and geopolitics.

The Trump administration's plans to strengthen U.S. shipbuilding could have significant implications for the global balance of power, particularly in relation to China's maritime dominance. By reducing reliance on Chinese-built ships, revitalizing the U.S. shipbuilding industry, and countering China's strategic ports strategy, the U.S. could enhance its naval readiness, strengthen its energy exports, and challenge China's global maritime dominance.

However, the success of these initiatives will depend on effective implementation and collaboration between the government and private industry. The potential benefits, such as job creation, economic growth, and enhanced national security, could be substantial. Nevertheless, the U.S. must also be prepared for potential retaliation from China and the challenges that may arise from disrupting the global shipping status quo.

In conclusion, the Trump administration's executive order represents a significant effort to bolster the U.S. shipbuilding industry and counter China's maritime dominance. The plan's success will hinge on effective implementation and the ability to navigate the complex geopolitical landscape. As the U.S. seeks to strengthen its maritime capabilities, the global balance of power may shift, with potential implications for trade, energy, and national security.