US President Donald Trump earlier this week signed a sweeping Executive Order that appears to be aimed and fundamentally re-structuring the US port, shipping, maritime and shipbuilding industries. Although the Executive Order, “Restoring America’s Maritime Dominance”, of 09 April 2025, has been widely reported in the media as being focused on US shipbuilding, the order is far wider in scope.
The primary policy justification for the Executive Order is that the U.S. maritime base has become too weak and this weakness is endangering national security; additionally, the Executive Order complains that China has become too maritime dominant. The policy is to make U.S. flagged & built vessels competitive on the international stage.
“The commercial shipbuilding capacity and maritime workforce of the United States has been weakened by decades of Government neglect, leading to the decline of a once strong industrial base while simultaneously empowering our adversaries and eroding United States nationals security. Both our allies and our strategic competitors produce ships for a fraction of the cost needed in the United States. Recent data shows that the United States constructs less than one percent of commercial ships globally, while the People’s Republic of China (PRC) is responsible for producing approximately half. Rectifying these issues requires a comprehensive approach that includes securing consistent, predictable, and durable Federal funding, making United States-flagged and built vessels commercially competitive in international commerce, rebuilding America’s maritime manufacturing capabilities (the Maritime Industrial Base), and expanding and strengthening the recruitment, training, and retention of the relevant workforce. It is the policy of the United States to revitalize and rebuild domestic maritime industries and workforce to promote national security and economic prosperity,” the Order reads.
The main thrust of the 24 clauses of the Order is for U.S. government officials to develop a “Maritime Action Plan”.
Key elements
- China-connected shipping and cranes: It instructs the U.S. Trade Representative to co-ordinate with other US officials to take any appropriate action to enforce any fees or penalties it decides are necessary as a result of its s.301 investigation into Chinese-connected shipping. It also instructs the USTR to propose tariffs on Chinese-connected ship-to-shore cranes.
- There is an anti-tariff avoidance measure to tackle cargo sent to the US via Canada or Mexico (both of which are explicitly referenced in the order). Any cargo of a non-US origin that arrives in North America by vessel, and which then crosses the US border by land, will be assessed for all duties, taxes etc plus a 10% service fee.
- Cargo preference laws – there are instructions to US Government officials to examine US cargo preference laws to see whether they can be used to ensure US cargo is transported on US built and flagged vessels with a view to promoting American shipping.
- A plan to increase the fleet of US-flagged commercially trading vessels – US officials have been instructed to deliver, within 180 days, a proposal for new laws that will ensure there is an adequate tonnage of US flagged and built commercial vessels along with incentives to ensure the participation of US-built and crewed vessels in the international trades; along with a plan to enhance subsidies to cover construction costs.
- Shipbuilding – government officials have been instructed to recommend for inclusion in the Maritime Action Plan all available incentives to help shipbuilders in allied nations to invest in US shipbuilding capacity. U.S. officials have been instructed to conduct a review of shipbuilding with a plan to increase the number of participants and competitors in US shipbuilding, and to reduce cost overruns.
- Maritime education and training – the order directs officials to report on ways to address workforce challenges in the maritime sector through educational institutions and workforce transitions. It directs officials to engage in consultation with labour organizations and private industry, and to also analyse the setting up, and expansion of, merchant marine academies.
- There are a wide range of other proposals including but not limited to, encouraging U.S. officials to carry out a range of research projects, set up plans for legislative proposals, carry out industry-environment analyses, reduce regulation, expand mariner training and education (both the training programmes and physical institutions); set up geographically defined maritime prosperity zones, and more. There are also a range administrative and administrative law provisions.
