- U.S. Launches Maritime Push to Compete with China.
- Executive Order Targets U.S. Shipbuilding Revival and Maritime Independence.
- Bipartisan Backing as Trump Moves to Boost U.S. Shipbuilding.
U.S. President Donald Trump signed an executive order on Wednesday to revive America’s shipbuilding industry and end reliance on Chinese-made ships. The order reflects a national priority for building U.S. maritime power and competitiveness, reports Reuters.
Boosting Domestic Maritime Industry
Trump emphasised the significance of the move, stating, “We’re way, way, way behind. We used to build a ship a day, and now we don’t do a ship a year, practically, and we have the capacity to do it.” The order reflects bipartisan support and aligns with long-standing concerns among lawmakers about global maritime dynamics.
Bipartisan Support in Congress
Democratic Senator Mark Kelly and Republican Senator Todd Young showed strong support for the executive order. They confirmed that they would reintroduce their bipartisan bill to obtain congressional approval for the major initiatives under the order.
Strategic Steps to Enhance U.S. Dominance
An inner provision instructs the U.S. Trade Representative (USTR) to make a proposal related to port docking charges for ships associated with Chinese-built or Chinese-flagged fleets. The proposal invites U.S. allies to follow similar practices to promote international maritime alignment.
Jamieson Greer, U.S. Trade Representative, clarified that public feedback influenced revisions to the original proposal. “This could have been a miscommunication issue, some people thought that all of those measures would be imposed,” he said. “Now we consider which of those measures is most appropriate.”
Fostering Domestic Investment and Shipyard Update
The directive also plans the encourage of private investment in updating shipyards, expanding dry docks, and the construction of commercial components. It emphasizes establishing a Maritime Security Trust Fund, using possible financing in the form of tariff revenues, fees, fines, or tax flows.
Trump added, “We’re going to be spending a lot of money on shipbuilding”, reinforcing the administration’s intention to rebuild industrial strength in this sector.
Prioritization of Crucial Maritime Machinery
The executive order directs USTR to consider possible tariffs on ship-to-shore cranes and other equipment for the handling of cargo that is made with Chinese-origin parts or by entities controlled by Chinese interests.
Fair Trade and Fee Collection
The Department of Homeland Security has been charged with the enforcement of Harbor Maintenance Fees and fair usage of U.S. port charges. It will also track and block evasion of such fees using alternative routes across Mexico or Canada.
Global Response and Market Competition
Responding to the order, China’s Foreign Ministry stated the growth of its shipbuilding industry was rooted in innovation and open-market participation. Spokesperson Lin Jian remarked, “The development of China’s shipbuilding industry is the result of technological innovation and active participation in market competition by enterprises.”
A Strategic Move Towards U.S. Maritime Development
As per the Center for Strategic and International Studies, while the United States now only produces less than 1% of commercial vessels worldwide, Chinese production has leapt to nearly 50%, a significant boost from 5% in 1999. The new executive order is being framed as a visionary step towards restoring U.S. capacity and global leadership in shipbuilding.
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Source: Reuters
