Estimated reading time: 4 minutes
By: Peter Bouwhuis
Every now and then, the shipping world throws us a curveball. The kind that makes you pause and ask: “Are we actually ready for this?” That’s exactly the feeling I get with the new SHIPS for America Act and the fresh round of Section 301 tariffs.
On paper, it looks bold. By 2030, the U.S. wants 250 new ships—U.S.-built, U.S.-flagged, U.S.-crewed. That’s not just a plan. That’s a fleet-building push that feels more like wartime prep. But here’s the nagging thought: Is this the lifeline American shipyards and mariners have been waiting for… or the start of another trade storm?
I’ll admit, the tax credits and shipbuilding grants sound good. Walk through any American yard that’s been quiet for years, and you can imagine how much energy those incentives could bring back. It’s not only about welders and fitters. It’s the suppliers, the small shops, the whole ecosystem that finally gets a reason to ramp up again.
And for mariners? Loan forgiveness and recruitment funds could be a real draw. Maybe it’s enough to convince more young people to go to sea—a career path that desperately needs fresh talent in the U.S.
But let’s be real. The Cargo Preference rules are going to sting. Picture this: one day, you’re free to carry government cargo. The next, 100% of it must go on U.S.-flagged ships. That’s like showing up at your favorite diner, only to be told the entire menu has changed—and your go-to dish? Gone.
Then there’s the LNG quota. By 2043, part of U.S. exports has to move on U.S.-built ships. For foreign carriers, that’s market share ripped out of their hands.
And just when you think that’s enough, here come the tariffs. Any ship built in China—or with Chinese ties—now pays a per-ton fee to enter U.S. ports. Today, it’s $50. By 2028, it jumps to $140. That’s a serious tab. Owners are already backing out of Chinese orders, shifting toward South Korea and Japan. The global order book is changing fast, and the ripple is spreading.
I get Washington’s logic. Secure the fleet. Boost shipbuilding. Bring back industries lost to outsourcing. It makes sense on a whiteboard. But trade doesn’t work that neatly. China’s not just going to shrug. Retaliation is already on the table, and a tit-for-tat cycle usually means one thing: higher costs, rerouted cargo, and delays. And in the end? The bill often lands in the lap of the small importer… or the everyday consumer.
And here’s the kicker. The Federal Maritime Commission—the referee in all this—has been shut down this week thanks to Washington’s budget deadlock. Imagine a soccer match where red cards are flying, but the ref never showed up. That’s where we are.
So where does that leave us? Somewhere in the middle. The SHIPS for America Act could be the turning point—the moment the U.S. finally rebuilds its maritime backbone. But it could just as easily unleash a wave of side effects: lost trade, higher freight costs, new diplomatic fights. And those waves don’t stop at shipowners. They hit ports, shippers, and eventually, households.
I want to believe this is the lifeline. I really do. I want to see busy shipyards again. I want to see ships flying the Stars and Stripes. I want young people to choose the sea not because they have to, but because there’s pride and a future in it.
But there’s a part of me that wonders… maybe this storm will hit harder than anyone expects.
