US President Donald Trump has signed an executive order aimed at reviving the US shipbuilding industry and reducing China's influence on global maritime transport, News.bg reports.
According to Reuters, the initiative envisages a significant increase in funding for the sector in the coming years.
For years, US lawmakers from both major parties have expressed concern about China's growing dominance in the maritime sector and the weakening readiness of the US Navy.
According to the order, the US Trade Representative is instructed to propose the introduction of high port fees - amounting to millions of dollars - for any ship that is part of a fleet that includes vessels built in China or flying the Chinese flag. It is planned that US allies will also be encouraged to take similar measures.
The proposals have been sharply criticized by American exporters, trade associations and shipping operators. They warn that such actions could lead to disruptions in supply chains, job losses in port cities and inflationary pressures. The order must be finalized by April 17.
Trade Representative Jamieson Greer said that a final decision on the proposed measures would be made by mid-month, stressing that not all of them would be implemented. “There was a misunderstanding – some people thought that all of these measures would go into effect. "We are currently considering which ones are most appropriate," he explained.
In addition, the executive order directs the USTR to consider imposing tariffs on ship cranes and other cargo handling equipment if they are manufactured, assembled, or contain components of Chinese origin, or if they are created by companies controlled by Chinese citizens.
The Department of Homeland Security is also tasked with imposing port maintenance fees and preventing carriers from circumventing these fees by using ports in Mexico and Canada and then transporting them overland to the United States.
“The United States will invest significantly in shipbuilding to restore our capabilities in the sector,“ Trump said. “We used to build one ship a day. Today, we barely make one a year, even though we have the capacity to change that.“
According to data, the United States currently builds less than 1% of the world’s merchant ships, while China builds about 50%.
The order also calls for the creation of a Maritime Security Trust Fund to provide sustainable funding for initiatives that strengthen the United States’ maritime capabilities. This includes using funds from tariffs, fines, fees, or tax revenues. It also encourages private investment in the construction of commercial components, shipyard modernization, repair facilities, and dry docks.
The American shipbuilding industry, which peaked in the 1970s, has been severely hampered by high production costs and a complicated regulatory environment, which has allowed countries like China to gain market leadership.