President Donald Trump has announced a major initiative to rebuild America’s shipbuilding industry, citing concerns over China’s dominance in global shipping and national security risks. The administration aims to boost domestic production and impose tariffs on Chinese-made vessels to reduce reliance on foreign manufacturers.
China’s share of global shipbuilding skyrocketed from less than 5% in 1999 to 50% by 2023, according to a Congressional Research Service report. This rapid expansion has significantly impacted U.S. shipyards, which once played a critical role in naval and commercial shipbuilding. During World War II, the United States produced three ships every two days; today, that number has dwindled to just five ships per year.
Michael Wessel, a consultant with ties to the United Steelworkers union, pointed to China’s nonmarket pricing as a key factor in the decline of American shipbuilding. “We have existing yards that can do more today, and we have facilities that can be brought online,” Wessel said.
Vice President J.D. Vance criticized past policies, particularly those under President Barack Obama, for pushing globalization that weakened domestic industries. The administration is now moving to reverse this trend through tariffs and incentives for domestic production.
To combat China’s control over the $150 billion global ocean shipping industry, U.S. Trade Representative Jamieson Greer has proposed new tariffs and fees on Chinese-made ships. The White House has also created an office to support U.S. shipbuilding, emphasizing its importance to national security. A public hearing scheduled for Monday will discuss a proposal to charge up to $1.5 million for Chinese-built vessels entering U.S. ports.
Critics of the plan argue that these tariffs could disrupt supply chains, potentially leading to port congestion similar to that seen during the COVID-19 pandemic. “You are absolutely going to disrupt the U.S. economy,” warned Joe Kramek, president of the World Shipping Council.
Despite skepticism from some industry leaders, Trump’s shipbuilding initiative has gained broad bipartisan support. A recent poll conducted by Morning Consult for the Alliance for American Manufacturing (AAM) found that 72% of Americans believe the U.S. cannot remain dependent on China for shipbuilding. Only 11% said America should continue to rely on foreign producers.
Scott Paul, president of AAM, noted that support for rebuilding the domestic shipbuilding industry is one of the rare bipartisan issues in Washington. “There’s pretty good support on Capitol Hill for being aggressive on shipbuilding as well,” he said.
As tensions with China continue to grow, the push for U.S. self-reliance in shipbuilding is likely to remain a top priority for the administration.
