Trump Administration Unveils Maritime Action Plan to Revive US Shipbuilding and Counter China’s Dominance

The Trump administration has released a comprehensive Maritime Action Plan aimed at rebuilding the United States shipbuilding industry and strengthening the broader maritime sector, funded in part through port fees on cargo arriving aboard China-built vessels. The levies, introduced under Section 301 following a U.S. investigation into China’s alleged unfair shipping practices, were expected to generate an estimated $3.2 billion annually before both countries agreed to pause the measures for 12 months amid escalating trade tensions.

The more than 30-page roadmap outlines a strategy to reverse decades of decline in U.S. shipbuilding, which has significantly contracted since World War Two and now trails global competitors, particularly China. The plan proposes establishing maritime prosperity zones to attract private investment, reforming maritime workforce training and education programs, expanding the fleet of U.S.-built and U.S.-flagged commercial vessels, reducing regulatory burdens, and creating a dedicated funding stream through a proposed Maritime Security Trust Fund.

The Section 301 penalties, announced last year, were designed to reduce China’s grip on global shipping markets and finance a revival of American shipyards. However, the port fees sparked strong opposition from the international shipping industry and triggered retaliatory measures from China, including its own fees on U.S.-linked vessels. The tit-for-tat actions disrupted global shipping flows before both sides reached an agreement to suspend the levies temporarily.

Read More: US Approves $1.5 Billion Project to Modernize Peru’s Key Naval Base near Chancay Port

Shipyard owners, maritime investors, and bipartisan lawmakers welcomed the administration’s new maritime strategy. Supporters pointed to alignment between the plan and the Shipbuilding and Harbor Infrastructure for Prosperity and Security (SHIPS) for America Act, a legislative proposal reintroduced by U.S. Senator Todd Young of Indiana and Democratic Senator Mark Kelly of Arizona. The proposed law would formally establish a Maritime Security Trust Fund to reinvest port fee proceeds into maritime infrastructure, shipyard modernization, and national maritime security projects.

Senator Young stated that the administration’s announcement should serve as a call for Congress to act swiftly to provide the legal authority and funding needed to implement the strategy, emphasizing the urgency of restoring American shipbuilding capacity.

The Maritime Action Plan marks a renewed effort to strengthen domestic ship construction, secure supply chains, enhance maritime security, and reduce dependence on foreign-built vessels, positioning the United States to compete more effectively in the global shipping industry.