In a fiery address to Congress, former President Donald Trump unveiled an ambitious strategy to breathe new life into America’s ailing shipbuilding industry. Framed as both an economic revival and a national security imperative, the plan aims to reclaim the nation’s maritime dominance from China, which has long held the reins of global vessel production. With sweeping reforms, tax incentives, and a new White House office dedicated to shipbuilding, Trump’s vision is clear: bring shipbuilding back to American shores.
The Rise and Fall of American Shipbuilding
Once a global leader in shipbuilding, the United States has seen its maritime industry wither over the decades. In 1975, the U.S. ranked number one, producing over 70 ships annually. Fast forward to today, and the nation barely scrapes together five commercial vessels a year, placing it 19th globally. Meanwhile, China has surged ahead, constructing more than 1,700 ships annually and controlling 50% of the global shipbuilding market.
Ambassador Katherine Tai, the U.S. Trade Representative, didn’t mince words: “Beijing’s dominance undermines fair competition and poses significant economic security risks. It’s time to reclaim our position as a maritime powerhouse.”
Trump’s Maritime Revival Plan
Trump’s plan is nothing short of audacious. At its core is the creation of a new Office of Shipbuilding within the White House, tasked with overseeing the revitalization of both military and commercial vessel production. To incentivize domestic manufacturing, the administration will roll out special tax breaks for shipyards, aiming to lure production back to U.S. soil.
“We used to make so many ships. We don’t make them anymore, not very much. But we’re going to make them very fast, very soon,” Trump declared, channeling his signature blend of optimism and urgency.
The plan also includes measures to counter China’s influence. In late February 2025, the U.S. Trade Representative imposed fees of up to $1.5 million on Chinese-built vessels entering American ports. This move followed a petition by major labor unions and a subsequent investigation that labeled China’s dominance as “unreasonable” and “burdensome” to U.S. commerce.
The Challenges Ahead
Despite these bold steps, the road to maritime revival is fraught with challenges. The U.S. currently has only around 80 vessels flying its flag, compared to China’s staggering 5,500. Moreover, American shipyards lack the capacity to produce oceangoing vessels at scale, a critical gap that neither tariffs nor sanctions can address overnight.
Adding to the complexity is a growing demand for qualified seafarers, a workforce that has dwindled alongside the industry. To tackle these issues, lawmakers introduced the “New SHIPS for America Act” in December 2024. The legislation aims to rejuvenate the U.S. Merchant Marine, ensuring the nation can transport critical goods and military cargo during conflicts while strengthening domestic supply chains in peacetime.
A Maritime Arms Race?
China’s shipbuilding dominance isn’t just about numbers—it’s about strategy. The nation controls 95% of global shipping container production and has invested heavily in its maritime infrastructure. In 2024 alone, Chinese shipowners spent a jaw-dropping $123 billion on newbuild orders, with giants like China Merchants Shipping and COSCO Shipping leading the charge.
The U.S. has responded with targeted sanctions, including adding COSCO Shipping to the Department of Defense’s sanctions list. But as the maritime arms race heats up, the question remains: Can America catch up, or will it remain adrift in China’s wake?
