U.S. President Donald Trump signed an executive order on Wednesday to address the revival of the U.S. shipbuilding industry and reduce China’s dominance in the global shipping sector, committing to increase funding for the initiative over the coming years.
The order has received support from Republican and Democratic lawmakers, who have expressed concerns over China’s growing control of maritime activities and the decline in U.S. naval preparedness.
The executive order instructs the U.S. Trade Representative (USTR) to proceed with a proposal that includes imposing docking fees of up to $1.5 million on ships linked to fleets with Chinese-built or Chinese-flagged vessels entering U.S. ports. It also urges U.S. allies to adopt similar measures.
The USTR’s initial fee proposal had drawn criticism from commodities exporters, trade groups, and U.S. ship operators, who cited potential supply chain disruptions, job losses in port cities, and inflationary pressures. USTR must finalize its remedies by April 17, 2025.
The order mandates the USTR to evaluate tariffs on ship-to-shore cranes manufactured, assembled, or containing components of Chinese origin, or produced by companies owned, controlled, or significantly influenced by Chinese citizens, as well as on other cargo-handling equipment.
It further directs the Department of Homeland Security to enforce the collection of Harbor Maintenance Fees and other charges, preventing carriers from avoiding these fees by routing cargo through Mexico or Canada and then into the U.S. via land borders.
Speaking in the Oval Office, Trump told reporters, “We’re way, way, way behind. We used to build a ship a day, and now we don’t do a ship a year, practically, and we have the capacity to do it.” He emphasized that the U.S. would be spending “a lot of money on shipbuilding” to rebuild capacity.
The executive order establishes a Maritime Security Trust Fund to secure consistent funding for programs enhancing U.S. maritime capacity, potentially utilizing new or existing tariff revenue, fines, fees, or taxes. It also proposes incentives to stimulate private investment in commercial component manufacturing and upgrades to shipyards, repair facilities, and dry docks.