Former President Donald Trump has unveiled an ambitious plan to restore the United States’ shipbuilding industry, promising to build more ships “very fast, very soon.” His administration is exploring the establishment of a White House shipbuilding office to oversee the revitalization of the industry, which has significantly declined over the past several decades. Trump’s renewed focus on shipbuilding comes as China’s dominance in the global maritime sector continues to grow, raising national security and economic concerns.
During a recent speech to Congress, Trump declared, “We used to make so many ships. We don’t make them anymore very much, but we’re going to make them very fast, very soon.” His administration is exploring aggressive policy measures, including tariffs and port fees on Chinese-built vessels, to fund the resurgence of American shipyards.
Why Is Trump Pushing for Shipbuilding?
The numbers paint a stark picture: in 2023, China produced more than 1,000 ocean-going vessels, while the United States built fewer than 10. This vast disparity is not just an economic concern but also a strategic one. China’s shipbuilding industry has received more than $100 billion in government support from 2010 to 2018, enabling its shipyards to dominate global orders. By contrast, U.S. shipyards have struggled to stay afloat, unable to compete with China’s state-backed facilities.
Trump and his supporters argue that China’s dominance poses a serious threat to both American industry and national security. The heads of four major labor unions recently sent a letter to Trump urging him to boost American shipbuilding and impose “strong penalties” on China for its increasingly dominant position. “We need some solutions to our shipbuilding gaps,” said Cynthia Cook of the Center for Strategic and International Studies (CSIS), acknowledging that China has taken over much of the market.
The Decline of U.S. Shipbuilding Under Biden
Under President Joe Biden, the American shipbuilding industry saw little improvement. The U.S. Navy’s fleet size continued to shrink, falling from 471 ships in 1992 to just 295 today. Meanwhile, U.S. commercial shipbuilding is virtually nonexistent on the global stage, accounting for less than 1% of new ship orders. Critics argue that Biden’s lack of focus on maritime industry policy has left the United States increasingly dependent on foreign-built vessels.
A recent industry analysis concluded that American ship production has declined by 85% since the 1950s. “Just about every major U.S. shipbuilding program is behind schedule, over budget, or irreparably off track,” said Republican Senator Roger Wicker, emphasizing the dysfunction in the sector.
French Shipping Magnate Pledges Support
One of the most significant developments in Trump’s shipbuilding revival effort is the support of French billionaire Rodolphe Saadé, CEO of CMA CGM, the world’s third-largest container shipping company. Saadé met with Trump at the White House and announced his company’s commitment to investing $20 billion in the U.S. maritime sector over the next four years.
“We’re talking about a massive investment of a shipping company and a logistics provider in a given country,” Saadé stated, describing the plan. The investment includes $8 billion for new containerships, $7 billion for logistics, $4 billion for port infrastructure, and $1 billion for air cargo expansion. CMA CGM also plans to triple the size of its U.S.-flagged fleet, upgrade its U.S. port facilities, and establish a major airfreight hub in Chicago.
Trump enthusiastically welcomed the pledge, stating, “You will have more ships with the U.S. flag as we move forward, and you can count on us to do as much as we can.” The French investment, Trump believes, will serve as a catalyst to attract further private-sector support for U.S. shipbuilding.
The State of U.S. Shipbuilding Today
The American shipbuilding industry, once a global leader, is now a shadow of its former self. There are currently 154 active shipyards in the U.S., but most focus on maintenance and repairs rather than new construction. Large facilities like Newport News Shipbuilding and General Dynamics NASSCO primarily build military vessels, leaving the U.S. with little capacity for commercial ship production.
Additionally, labor shortages, outdated infrastructure, and rising costs have made it difficult for American shipbuilders to compete internationally. The COVID-19 pandemic worsened the workforce issue, leading to early retirements and fewer skilled laborers available for ship construction. “You cannot immediately get more ships by throwing money at the problem,” warned Cynthia Cook of CSIS.
Trump’s Plan: Goals and Challenges
Trump’s administration is considering multiple strategies to fund the American shipbuilding revival. One of the most debated proposals is imposing steep port fees on Chinese-built ships and vessels that operate within Chinese-dominated fleets. The fees, which could reach up to $1.5 million per port call, are intended to generate revenue for the domestic shipbuilding sector. However, trade and agriculture groups have voiced concerns that such fees could disrupt global supply chains and increase costs for American consumers.
Trump also plans to create an Office of Shipbuilding within the White House to oversee policy initiatives and push for regulatory reforms to support shipbuilders. His broader goal is to rebuild the U.S. maritime industry in both commercial and military sectors. “We haven’t done anything. We used to build a ship a day, and now we essentially don’t build ships. We’re going to start that,” Trump said, emphasizing his commitment to rapid industrial growth.
The Global Implications
If Trump succeeds in revitalizing American shipbuilding, the impact could be far-reaching. A stronger domestic shipbuilding industry would reduce reliance on foreign-built vessels, enhance military readiness, and create thousands of high-paying manufacturing jobs. Additionally, challenging China’s maritime dominance could reshape global trade dynamics and strengthen U.S. economic security.
However, opponents argue that the costs of such an undertaking are steep. The World Shipping Council estimates that Trump’s proposed policies could impose up to $30 billion in annual costs on global trade and double the price of shipping U.S. exports. “Policymakers must reconsider these damaging proposals and seek alternative solutions that support American industries,” warned WSC CEO Joe Kramek.
Trump’s call to “resurrect” the American shipbuilding industry is one of the most ambitious economic initiatives of his political career. With the backing of French shipping giant CMA CGM and a renewed push for government support, his plan has gained significant momentum. However, the challenges remain daunting: U.S. shipbuilding infrastructure is outdated, labor shortages persist, and trade policies could disrupt global commerce.
While Trump’s vision presents an opportunity for economic revival, the question remains whether the U.S. can act swiftly and effectively enough to compete with China’s well-established maritime empire. “We need to act now to stop the decline of our shipbuilding industry,” warned Scott Paul of the American Alliance for Manufacturing. Whether Trump’s bold strategy can turn the tide remains to be seen, but one thing is clear: the future of American shipbuilding is once again in the spotlight.
Investment Opportunities in U.S. Shipbuilding and Related Sectors
Based on the information in the article, several investment opportunities could emerge from Trump’s shipbuilding push. Here are some areas to consider:
U.S. Shipbuilding Companies
- General Dynamics (NYSE: GD) – Operates NASSCO, a key U.S. military and commercial shipbuilder.
- Huntington Ingalls Industries (NYSE: HII) – One of the largest U.S. shipbuilders, specializing in nuclear-powered vessels and military contracts.
- Austal USA (OTC: AUTLY) – A key player in aluminum shipbuilding, particularly for military applications.
- Philly Shipyard (OTC: PHLYY) – Specializes in commercial shipbuilding and could benefit from government incentives.
Port and Logistics Infrastructure
- CMA CGM (Privately Held, but bonds/trade partners could be opportunities) – The French shipping giant investing $20 billion in U.S. maritime infrastructure.
- APM Terminals (Owned by Maersk, OTC: AMKBY) – Likely to benefit from increased port investments.
- DP World (Privately Owned) – A global port operator that could expand operations in the U.S.
- Ports & Cargo Handlers – Companies involved in port expansions, such as West Coast and East Coast terminal operators, could see increased investment.
U.S. Steel and Manufacturing
- Nucor (NYSE: NUE) – A major U.S. steel producer that could benefit from increased shipbuilding demand.
- Steel Dynamics (NASDAQ: STLD) – Another key steel manufacturer likely to see demand growth.
- Cleveland-Cliffs (NYSE: CLF) – A key supplier of steel products for shipbuilding.
Defense Contractors with Maritime Divisions
- Lockheed Martin (NYSE: LMT) – Could see increased naval contracts.
- Raytheon Technologies (NYSE: RTX) – Supplies ship-based defense systems.
- Boeing (NYSE: BA) – Through its subsidiary Insitu, involved in maritime surveillance and defense projects.
Alternative Shipbuilders (South Korea & Europe)
- Hyundai Heavy Industries (KRX: 329180.KQ) – South Korea-based shipbuilder likely to receive U.S.-flagged ship orders.
- Fincantieri (BIT: FCT) – Italian shipbuilding firm involved in U.S. Navy contracts.
U.S. Maritime Transport & Shipping
- Matson (NYSE: MATX) – A U.S.-flagged shipping company that could benefit from incentives.
- Crowley Maritime (Privately Held) – Operates U.S.-flagged shipping and logistics.
- Kirby Corporation (NYSE: KEX) – A leading inland and coastal shipping company in the U.S.
U.S. Aerospace & Air Cargo (for the Chicago Air Hub)
- FedEx (NYSE: FDX) & UPS (NYSE: UPS) – Air cargo companies that might benefit from increased demand.
- Boeing (NYSE: BA) – Likely supplier of aircraft for the planned Chicago airfreight hub.
These sectors and companies stand to benefit from increased government spending, trade policy shifts, and infrastructure expansion tied to the resurgence of the U.S. shipbuilding industry.
