Trump Signs Executive Order to Strengthen U.S. Shipbuilding
On Wednesday, U.S. President Donald Trump signed an executive order containing new measures to support U.S. shipbuilding, centered on a new "Maritime Action Plan."
The order was prepared primarily by the National Security Council staff and National Security Advisor Mike Waltz, a White House aide said at the event. A copy of the final order was obtained by TME, and it includes the following measures:
- Directs the creation of a Maritime Action Plan (MAP) to revitalize U.S. maritime industries.
- Directs the United States Trade Representative (USTR) to make recommendations about China’s anticompetitive shipbuilding policies, and to consider tariffs on Chinese-built cargo cranes.
- Directs Customs and Border Protection to charge the U.S. Harbor Maintenance Fee on all foreign cargoes that arrive in ports in Mexico or Canada and then enter the United States via land, plus a 10 percent service charge.
- Directs the Department of Transportation and Office of Management and Budget to propose a Maritime Security Trust Fund for U.S. shipping, funded by tariffs, fines, fees or other dedicated revenue streams.
- Directs the Department of Transportation to write a legislative proposal for a Shipbuilding Financial Incentives Program, which would supplement or replace the Small Shipyard Grant Program and the Federal Ship Financing (Title XI) Program.
- Directs multiple agencies to draft a legislative proposal for "national maritime scholarships" to send maritime experts abroad to learn "cutting edge techniques and subjects."
- Directs multiple agencies to propose a Maritime Prosperity Zone system to incentivize investment in waterfront communities.
- Directs the Department of Transportation to take action on U.S. Merchant Marine Academy repairs and long-range infrastructure budgeting, in conjunction with the Department of Government Efficiency.
- Directs a review of federal shipbuilding procurement, aiming to "identify for elimination excessive requirements, including the number of government reviews and onerous regulations."
- Directs a review of cargo preference rates and whether they could be increased to support U.S.-flagged shipping.
- Directs the Departments of Defense, Transportation (MARAD) and Homeland Security (Coast Guard) to identify maritime regulations for elimination.
"We used to build a ship a day, and now we don't do a ship a year, practically," Trump said. "We're going to be spending a lot of money on shipbuilding, we're way, way behind."
American shipyards and shipbuilders welcomed the news of the order.
"With this executive order, it is clear that President Trump and his administration is deeply committed to reenergizing and investing in our nation’s shipyards and we are eager to begin this important work alongside policymakers and industry partners to restore America’s shipbuilding strength," said Matthew Paxton, President of the Shipbuilders Council of America (SCA).
"We thank President Trump and the White House for taking historic steps to revitalize American shipbuilding," said the Florida-based shipyard Eastern Shipbuilding Group (ESG) in a statement. "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!"
“Today, President Trump delivered a major step towards resurrecting America’s maritime industry and ushering in a golden age in American shipbuilding,” said U.S. Transportation Secretary Sean P. Duffy in a statement. “We will ensure the United States remains the premier maritime power and an economic powerhouse. And to the young Americans from all over the country who are interested in a maritime career – know that this administration has your back and believes you are a worthwhile investment in the prosperity of America.”