Quick Hit:

President Donald Trump has signed a sweeping executive order to reinvigorate the American maritime industry and push back against China's growing control over global shipping. 

Key Details:

• The executive order directs a full federal review to rebuild U.S. shipbuilding and maritime labor within seven months.

• It outlines tariffs and fees targeting Chinese-made shipping equipment and ships calling at U.S. ports.

• The policy seeks to implement key elements of the bipartisan Ships for America Act without waiting on full congressional passage.

Diving Deeper:

President Trump signed the executive order Wednesday in a momentous move that underscores his administration’s America First economic priorities. Speaking in a televised C-SPAN address, Trump declared, “We used to build a ship a day, and now we don’t do a ship a year practically,” as he framed the issue not only in economic terms but as a direct national security concern.

The directive empowers National Security Adviser Mike Waltz and agency heads to produce detailed plans within seven months to overhaul the maritime sector. Waltz, a leading voice behind the effort, had co-sponsored the Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act in Congress last year—a bill aimed at reviving U.S. shipyards, expanding the U.S.-flagged fleet, and investing in port infrastructure.

The executive order is not just symbolic. It lays out a framework to reverse decades of decline in America’s maritime might, while directly countering China's strategic shipbuilding surge. China now dominates global ship production, accounting for 29% of containerships in operation and 70% of those on order. It also leads in manufacturing the vast majority of shipping containers and port cranes—an alarming fact for U.S. officials worried about foreign control over vital supply chains.

William Henagan, a former Biden administration official and research fellow at the Council on Foreign Relations, warned that within a decade, China could hold the same kind of power in global shipping that the U.S. holds in international finance through the dollar. “The balance of geopolitical power could shift for a generation,” he said.

To counter that, the executive order sets the stage for federal investment through a potential Maritime Security Trust Fund, although such spending will require congressional approval. Fortunately for the administration, bipartisan momentum is growing. Senators Mark Kelly (D-AZ) and Todd Young (R-IN), along with two House members, announced they intend to reintroduce legislation to provide those authorizations.

In a parallel effort, the U.S. Trade Representative (USTR) has been evaluating a policy to impose significant fees on Chinese-built or Chinese-flagged ships entering American ports. The executive order directs the USTR to explore extending such penalties to Chinese-manufactured port cranes and cargo-handling equipment as well. Although many U.S. companies and trade groups testified against the proposed fees in March, U.S. Trade Representative Jamieson Greer told the Senate Finance Committee that revisions to the plan are underway.

At a time of increasing maritime and military tensions with China, Trump’s order represents a pivotal policy shift designed to reestablish America’s dominance at sea. The administration is also exploring collaboration with key allies like South Korea to bolster naval ship production, reinforcing a broader strategic realignment in the Indo-Pacific.