U.S. Trade Representative's Bold Move: A Game Changer for American Shipbuilding!

The 600,000-member IAM Union (International Association of Machinists and Aerospace Workers) is ecstatic about the United States Trade Representative (USTR) taking decisive action to protect American jobs, national security, and the American shipbuilding industry. Along with other labor allies, the IAM led a Section 301 petition to the USTR and has been working collaboratively with allies and two administrations to bring about these much-needed relief measures.

“THE IAM UNION IS PLEASED TO SEE MEANINGFUL REMEDIES PUT FORWARD TO REINVIGORATE DOMESTIC SHIPBUILDING,” said IAM International President Brian Bryant, who recently testified at the USTR’s hearing on Section 301 proposed remedies to China’s aggressive targeting of the maritime, logistics, and shipbuilding sectors. “WE WILL CONTINUE TO WORK TO ENSURE THESE POLICIES ARE PROPERLY IMPLEMENTED SO THAT WE ARE SUCCESSFUL IN CREATING HIGH-QUALITY JOBS FOR IAM MEMBERS IN THE SHIPBUILDING AND SHIP REPAIR INDUSTRIES.”

The USTR’s shipbuilding remedies include targeted fees on Chinese-built vessels when they dock at U.S. ports, and higher charges for Chinese-owned and operated ships. These measures are designed to level the playing field and encourage the use of U.S.-built ships, thereby reducing dependence on Chinese-built vessels.

In January, the IAM Union and its labor partners welcomed a comprehensive report from the USTR on its investigation into commercial shipbuilding. The report revealed that the People’s Republic of China (PRC) engaged in a broad range of tactics designed to dominate and control the maritime, shipbuilding, and logistics sectors. These tactics have decimated U.S. shipbuilding, maritime, and logistics capabilities, contributing to the loss of thousands of jobs. Illegal trade practices, including subsidies, preferential sourcing policies, and unfair labor practices, have significantly weakened the nation’s economic and military strength.

In March, IAM Eastern Territory General Vice President David Sullivan joined U.S. Rep. John Garamendi (D-Calif.) for a press conference at the IAM-represented Mare Island Dry Dock. The coalition called for action against China’s unlawful trade practices and promoted Garamendi’s SHIPS for America Act to help rebuild America’s shipbuilding industry and empower American workers.

“TODAY MARKS A MAJOR ACHIEVEMENT FOR POLICY TO REINVIGORATE DOMESTIC SHIPBUILDING, BUT THE IAM WILL CONTINUE TO FIGHT TO MAKE SURE THESE POLICIES USHER IN REAL RESULTS,” said IAM Eastern Territory General Vice President David Sullivan. “WE WILL CONTINUE TO FIGHT FOR HIGH-QUALITY SHIPBUILDING JOBS ACROSS THE COUNTRY AND TO ADVANCE THIS INDUSTRY FORWARD FOR THE SAKE OF ECONOMIC AND NATIONAL SECURITY.”

The IAM Union (International Association of Machinists and Aerospace Workers) is one of North America’s largest and most diverse industrial trade unions, representing approximately 600,000 active and retired members in the aerospace, defense, airlines, shipbuilding, railroad, transit, healthcare, automotive, and other industries across the United States and Canada.

The USTR’s findings and the subsequent actions taken by the administration demonstrate a commitment to addressing China's unfair trade practices and protecting American industries. These measures are likely to be effective in the long term, as they address both immediate economic security risks and long-term supply chain resilience. The USTR’s report and the proposed remedies set the stage for urgent action to invest in America and strengthen supply chains, creating good-paying American jobs and supporting the U.S. military's shipbuilding needs.