Trump charts US shipbuilding revival amid China trade clash
The United States has launched a new federal push to restore commercial shipbuilding capacity, as announced by the White House last week. The move could carry long-term implications for agricultural exporters and importers navigating the escalating US-China maritime trade tensions.
On April 9 of last year, President Donald Trump signed an Executive Order directing the development of a Maritime Action Plan (MAP) to expand domestic shipbuilding, modernize procurement, and strengthen the Maritime Industrial Base (MIB).
The document was signed just as reciprocal US and Chinese port levies reshaped international shipping.
Key reforms to revive US shipbuilding
The MAP calls for reforms to federal procurement and regulatory processes to accelerate ship construction and reduce costs. It directs coordination among the Secretaries of State, Commerce, Labor, Transportation, Homeland Security, the US Trade Representative (USTR), and the Office of Management and Budget, among others.
The administration said the plan will provide “reliable long-term funding and demand for US-built ships, shipyards, and mariners,” as well as streamline regulations to rebuild maritime capacity “at the speed and scale required to meet the challenges of today and the future.”
“The United States can neither afford for its trade to and from foreign markets to be ferried almost entirely on foreign-built, crewed, and flagged ships, nor for the MIB to be unable to build and maintain the vessels the United States needs to defend American interests on the high seas,” said the government announcement.
Escalating conflict
The MAP builds on trade actions tied to a January 2025 report from the Office of the USTR under Section 301 of the Trade Act of 1974. The document concluded that China’s targeted dominance in the maritime, logistics, and shipbuilding sectors is “unreasonable and burdens or restricts US commerce, and is therefore ‘actionable’ under Section 301.”
US port entry fees on Chinese-built or Chinese-operated vessels took effect on October 14, 2025. The policy applies to Chinese companies and to non-Chinese operators sailing Chinese-made ships. The administration has said the goal is to disincentivize the purchase of Chinese-built vessels and stimulate US shipbuilding demand.
China responded with reciprocal tariffs on US-built, US-flagged, or US-operated vessels, and on ships owned or operated by companies with at least 25 percent US equity. The Asian authorities also launched an investigation into the impact of US trade measures on the Chinese shipping and shipbuilding sectors.
In public statements, Chinese officials described US actions as unilateral and protectionist.
For US produce exporters, including tree fruit, citrus, and nut shippers reliant on containerized ocean freight to Asia, vessel availability and freight rates remain key concerns as the trade dispute continues.
Importers sourcing garlic, ginger, apple juice concentrate, and other specialty items from China also face potential cost volatility tied to vessel supply and port fees.
The US-China shipbuilding divide
Less than one percent of new commercial ships are currently built domestically. The US has 66 shipyards, including eight active shipbuilding yards, 11 shipyards with build positions, 22 repair yards with drydocking capability, and 25 topside repair yards.
By comparison, China accounts for 60 percent of new large vessels delivered in 2024, according to BRS Shipbrokers. A 2025 New York Times report said US yards produced just one large commercial vessel in 2024, compared with 717 built in China.
The Trump Administration said decades of limited federal investment, regulatory burdens, and complex procurement processes have constrained domestic capacity and driven up costs, while foreign competitors expanded market share.
“The United States is decisively moving towards a new Maritime Golden Age by expanding commercial shipbuilding capacity, building a resilient workforce, and strengthening alliances that advance both our nation’s economic prosperity and its national security,” the announcement read.
Read the full Maritime Action Plan below.
Restoring-Americas-Maritime-Dominance*All images are referential.
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