In a move to address America’s dwindling shipbuilding capabilities, President Donald Trump has signed a sweeping executive order titled “Restoring America’s Maritime Dominance.” This directive puts the U.S. maritime industry in the national spotlight and aims to close the staggering production gap with China — currently building 74% of the world’s ships compared to America’s negligible 0.2%.
The executive order lays the groundwork for a Maritime Action Plan (MAP) — a cross-government strategy focused on rebuilding the U.S. shipbuilding sector, increasing U.S.-flagged vessel capacity, and fortifying national security interests tied to maritime infrastructure.
At the core of this push is the creation of a Maritime Security Trust Fund — a dedicated financing mechanism that promises to bring some much-needed consistency to an industry that’s often been plagued by volatile investment cycles.
Maritime Security Trust Fund: A Lifeline for the Industry
This new trust fund is expected to act as a long-term financial engine, drawing revenue from port fees like the Harbor Maintenance Fee, targeted tariffs, and other federal sources. The funding will go toward shipyard modernization, workforce development, and port infrastructure, and will particularly fuel the Shipbuilding Financial Incentives Program — an initiative designed to attract private capital into domestic shipbuilding.
Sean P. Duffy, U.S. Transportation Secretary, called the order a “major step toward resurrecting America’s maritime industry,” pointing to decades of federal underinvestment and slow-moving procurement as key contributors to the sector’s decline. “Thanks to President Trump’s leadership, we have a once-in-a-generation opportunity to fix it,” Duffy added.
Trade, Tariffs, and Targeting China
The executive order doesn’t hold back in pointing fingers. It directs the U.S. Trade Representative to investigate China’s “anticompetitive actions” in shipbuilding — a sector where Beijing has leveraged state subsidies and bulk manufacturing power to dominate the global landscape.
In a bold move, the order proposes imposing tariffs under Section 301 on Chinese-manufactured cargo-handling equipment — including ship-to-shore cranes, of which China builds 80% and the U.S. currently produces none.
There’s also a call to tighten enforcement of the Harbor Maintenance Fee, addressing the long-standing issue of importers routing cargo through Canada or Mexico to skirt U.S. port charges. By closing this loophole, the administration hopes to recapture lost revenue for reinvestment into American maritime infrastructure.
Maritime Prosperity Zones and Strategic Fleet Goals
Modeled after Opportunity Zones, the order introduces Maritime Prosperity Zones — geographically targeted areas designed to incentivize domestic and allied investments in shipbuilding and logistics operations. These zones are expected to serve as hubs for industrial renewal, workforce training, and advanced manufacturing.
Through MARAD (Maritime Administration), the Department of Transportation is tasked with setting clear fleet capacity goals for a U.S. strategic commercial fleet. This includes new procurement strategies to bolster domestic shipbuilders and strengthen America’s Merchant Marine.
Matthew Paxton, president of the Shipbuilders Council of America, welcomed the action, stating, “A strong U.S. shipyard industry is essential not only for our economic security but also for our homeland and national security.” He emphasized that the initiative lays the groundwork to “build the fleet of the future.”
Military, Arctic Security, and Bureaucratic Streamlining
The order takes a broad national security view. It assigns the Secretary of Defense to evaluate the expansion of the Maritime Industrial Base, including the use of the Defense Production Act Title III to spur investment in shipbuilding.
Recognizing the Arctic’s growing geopolitical importance, the MAP will also include a strategy to ensure American security and presence in the region. This comes amid increased maritime activity by foreign nations in the Arctic and reflects a push for greater U.S. control over polar shipping routes and resources.
Additionally, the Department of Government Efficiency will lead a review of procurement processes at both the Department of Defense and Department of Homeland Security, aiming to untangle bureaucratic red tape that has long hindered cost-effective and timely shipbuilding.
Industry and Political Support Gathers Momentum
The announcement was met with bipartisan support. Lawmakers, including Sen. Mark Kelly (D-Ariz.), Sen. Todd Young (R-Ind.), Rep. Trent Kelly (R-Miss.), and Rep. John Garamendi (D-Calif.), signaled their intention to reintroduce the SHIPS for America Act, aiming to align legislative backing with the executive action.
Chris Kastner, President and CEO of HII, one of the largest U.S. shipbuilders, praised the move: “This order is a bold step in the right direction, to expand capacity in shipbuilding and workforce development to meet the urgent, increased demand for ships for the Navy and the nation.”
Meanwhile, Eastern Shipbuilding Group highlighted the plan’s potential to re-anchor shipbuilding as a pillar of American industrial strength, stating, “We thank President Trump and the White House for taking historic steps to revitalize American shipbuilding.”
As part of the order, the newly formed Office of Maritime and Industrial Capacity at the White House will coordinate efforts with Defense, Commerce, Labor, Transportation, and Homeland Security, along with the Office of Management and Budget. Together, these agencies are expected to deliver a finalized Maritime Action Plan within 210 days — a roadmap to transform vision into results.
What Comes Next?
Cabinet secretaries now face a 45-day deadline to submit an initial review of federal shipbuilding practices, complete with agency-specific recommendations for reducing cost overruns, streamlining production, and expanding participation across the Army, Navy, and Coast Guard shipbuilding programs.
Whether this action leads to tangible outcomes or sinks into bureaucratic drift will depend largely on follow-through, congressional support, and the private sector’s willingness to bet big on American shipbuilding once again.
