In a significant move to strengthen the United States’ maritime industry, a new executive order has been issued, aiming to revitalize the domestic shipbuilding capacity and workforce.
The order highlights a concerning trend in which U.S. commercial shipbuilding has dramatically declined, now constituting less than one percent of global production, while competitors such as the People’s Republic of China (PRC) dominate the sector, producing approximately half of the world’s commercial ships.
The administration has directed the Assistant to the President for National Security Affairs (APNSA) to collaborate with key Cabinet members, including the Secretaries of State, Defense, Commerce, Labor, Transportation, Homeland Security, and the United States Trade Representative, to develop a comprehensive Maritime Action Plan (MAP).
This plan, mandated to be submitted within 210 days, will seek to secure reliable federal funding, enhance the competitiveness of U.S.-flagged vessels in international commerce, and ultimately rebuild America’s Maritime Industrial Base.
To support these efforts, an initial assessment will focus on the security and resilience of the maritime industrial base, which is essential for national security and economic prosperity.
The Secretary of Defense, working with other secretaries, is tasked with evaluating options for investment and expansion of shipbuilding capabilities and workforce training within the next 180 days.
The order also aims to tackle unfair trade practices from the PRC, specifically targeting maritime, logistics, and shipbuilding sectors. The United States Trade Representative is instructed to investigate and respond to such practices by potentially imposing tariffs on certain imports that undermine American industries.
Additionally, the order addresses the collection of Harbor Maintenance Fees (HMF) to prevent foreign cargo carriers from bypassing U.S. ports in favor of Canadian or Mexican ports, posing a threat to domestic revenue.
To further align trade policies, the USTR will engage with allies and partners, developing an engagement plan within 90 days to coordinate responses to the sections of the executive order relevant to international trade.
Efforts will also be made to reduce dependence on adversaries by fostering partnerships with allied nations, encouraging them to invest in U.S. shipbuilding capabilities.
A Maritime Security Trust Fund will be proposed to ensure sustainable funding for MAP programs, with independent sources being evaluated to support its initiatives.
In an effort to stimulate the shipbuilding sector, a new financial incentives program will be established to encourage private investment in the maritime industry, particularly for the construction and repair of vessels.
The Secretary of Commerce will also spearhead the establishment of Maritime Prosperity Zones to drive investment in shipbuilding, similar to previously established opportunity zones, promoting growth in waterfront communities.
Another critical area of focus outlined in the order is workforce challenges in the maritime industry. Multiple federal agencies will report on strategies to expand education and training institutions in the maritime field.
This includes an assessment of existing maritime academies and the credentialing processes for mariners to enhance recruitment for the skilled workforce.
Simultaneously, the U.S. Merchant Marine Academy will undergo modernization, with immediate actions to address critical maintenance and long-term upgrades to enhance its facilities.
The procurement process for government vessels is also set to be reformed, aimed at improving efficiency and reducing acquisition delays through innovative strategies.
A review of shipbuilding practices for government use will provide insights into increasing competition and reducing costs within the shipbuilding sector.
The executive order also emphasizes the importance of increasing the fleet of commercially flagged vessels, ensuring they can support national security in times of crisis.
Strengthening Arctic waterways is included in the initiatives, with the Secretary of Defense consulting with various departments to develop a strategy to secure these vital routes.
The order mandates a holistic interagency effort to follow through on these directives, emphasizing the need for coordination across departments to achieve the desired outcomes.
As part of this comprehensive approach, the administration cautions that any findings or proposals resulting from this plan should consider regulatory relief to boost industry efficiency and innovation.
Ultimately, this executive order represents a foundational effort to rekindle the United States’ maritime industrial capabilities, aiming to secure national interests and economic prosperity in a globally competitive environment.
image source from:https://www.whitehouse.gov/presidential-actions/2025/04/restoring-americas-maritime-dominance/