Trump Signs Maritime-Focused Executive Order

President Donald J. Trump signed an executive crder April 9 intended “to restore American maritime dominance.” The order implements a number of sweeping and long-standing recommendations from supporters of a strong U.S. merchant marine and domestic shipbuilding industry. It follows other actions, including the establishment of a new Office of Maritime and Industrial Capacity at the National Security Council in the White House.

In a statement, the White House said, “After being weakened by decades of government neglect, President Trump is prioritizing the revitalization of the U.S. maritime industry to strengthen the nation’s economic and national security as part of the America First agenda.”

The order directs the creation of a Maritime Action Plan (MAP) to “restore and create sustained resiliency for the American maritime industry.” It instructs the secretary of defense to “assess options, including the Defense Production Act Title III authorities, to invest in and expand the Maritime Industrial Base.” Title III authorizes the president to “incentivize the domestic industrial base to create, maintain, protect, expand or restore capabilities for critical materials and goods essential for national security” through actions like providing loan guarantees on favorable terms to certain industries.

In addition to shipbuilding financial incentives to boost private investment, the order establishes a Maritime Security Trust Fund to provide consistent funding for maritime programs. All fees on foreign vessels under the order will go directly into this fund. It also directs the Department of Government Efficiency (DOGE) to begin its own review of the vessel procurement process for the departments of Defense and Homeland Security.

Actions Against China

The executive order also directs the United States Trade Representative (USTR) to make recommendations “regarding China’s anticompetitive actions within the shipbuilding industry.” China’s dramatic ramping up of shipbuilding over the past five years has alarmed the leaders in Washington, with China quickly surpassing South Korea, Japan and other traditional shipbuilding nations.

A White House fact sheet included statistics illustrating Chinese dominance. In 2023, China accounted for around 51 percent of the global shipbuilding market. Overall, 0.2 percent of the world’s ships are built by the United States, compared to 74 percent built by China in 2024. China accounts for 96 percent of the containers used to move commodities around the world. The United States accounts for 0 percent. Likewise, 80 percent of ship-to-shore cranes are built in China, compared to 0 percent in the United States.

According to the fact sheet, Chinese state-owned software is being installed in port operations across the United States, with limited to no alternatives. This refers to the Chinese-developed LOGINK logistics software, which integrates data from ships, barges, railroad and trucks to provide a worldwide map of cargo movement. The software has been identified as a security threat by several U.S. agencies.

After a group of maritime unions files a petition last year, the USTR has been considering taking various actions against China to protect U.S. shipbuilding capacity, including imposing a fee of $1 million per visit on Chinese-built ships calling on U.S. ports. After strong pushback during a comment period from farm interests and exporters, who said such a fee would hurt them worse than China, the administration has reportedly considered changing the formula for imposing fees on Chinese-built vessels to penalize a shipper according to total tonnage of Chinese vessels. According to a recent report by Reuters, the mere rumor of such measures has temporarily halted orders at Chinese shipyards.

The maritime EO directs the secretary of homeland security to enforce collection of the Harbor Maintenance Fee and other charges on foreign cargo entering the United States to prevent circumvention via Canada or Mexico. The White House commented, “This will put an end to a longstanding unfair practice, ensuring all cargoes entering the United States are assessed the proper applicable fees and generating additional revenue for investment into the maritime industry.”

Maritime Prosperity Zones

The executive order also develops Maritime Prosperity Zones to incentivize investment in waterfront communities, modeled on Trump’s Opportunity Zone concept from his first term. It expands mariner training and education through an investment in the U.S. Merchant Marine Academy and a plan for expanding training opportunities. The order also “directs the secretary of defense to conduct a review and issue guidance on the funding, retention, support and mobilization of a robust inactive reserve fleet, to ensure we have adequate assured access to sealift capacity whenever needed for military operations.”

Eastern Shipbuilding Group (ESG) said in a press release, “We thank President Trump and the White House for taking historic steps to revitalize American shipbuilding. As a multi-generation, American-owned shipyard, we know firsthand how important our industry is to America’s economic prosperity and security. With the world’s most skilled craftsmen, we can strengthen our industrial capacity and uphold our dominance on the seas. Let’s get it done!” ESG, located in Panama City, Fla., builds vessels for national defense and commercial clients, including the U.S. Coast Guard’s Heritage Class Offshore Patrol Cutters and the U.S. Army Corps of Engineers’ forthcoming medium class hopper dredge.

U.S. Rep. Sam Graves (R-Mo.), chairman of the House Transportation and Infrastructure Committee, said, “This executive order marks a welcome shift away from decades of decline in our country’s maritime sector and demonstrates President Trump’s commitment to reinvigorating our domestic maritime industrial base. I’m also excited about the establishment of maritime prosperity zones for investment in the U.S. maritime industries and communities beyond coastal shipbuilding and repair regions, including river regions. As the administration begins to implement the president’s executive order, I am committed to working with them to put America’s maritime capabilities first.”