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Here’s Everything You Need to Know About Trump’s Executive Order to Restore U.S. Maritime Dominance

Mike Schuler
Total Views: 25
April 9, 2025

President Donald Trump has signed a sweeping executive order aimed at revitalizing America’s struggling shipbuilding industry, strengthening its maritime workforce, and expanding the nation’s global shipping presence.

The executive order, titled “Restoring America’s Maritime Dominance,” addresses a critical national security concern, with the United States currently constructs less than one percent of commercial ships globally, while China produces approximately half.

At the heart of the order is the Maritime Action Plan (MAP), which must be submitted within 210 days. The order tasks the Assistant to the President for National Security Affairs will coordinate with multiple cabinet secretaries—including the Departments of State, Defense, Commerce, Labor, Transportation, and Homeland Security—to develop the comprehensive strategy.

The order also establishes several key initiatives with specific deadlines:

Within 30 days, the Department of Transportation must address urgent maintenance at the U.S. Merchant Marine Academy and begin hiring necessary facilities staff. Simultaneously, the Departments of Defense, Transportation, and Homeland Security must review regulations to identify opportunities for deregulation.

A 45-day deadline requires a comprehensive shipbuilding review focusing on increasing competition and reducing cost overruns in government vessel construction.

The 90-day mark brings multiple deliverables, including engagement with international allies on trade policies, development of Maritime Prosperity Zones modeled after Trump 1.0-era opportunity zones, and a detailed report on maritime industry needs. The Defense Department must also develop an Arctic waterways security strategy during this period.

Looking at workforce development, the order mandates a thorough assessment of mariner training and education. This includes analyzing the potential for new merchant marine academies and creating national maritime scholarships for both domestic experts to study abroad and foreign experts to teach in U.S. institutions.

A major focus is addressing China’s maritime dominance. The order directs the U.S. Trade Representative to consider implementing tariffs on ship-to-shore cranes and cargo handling equipment manufactured with Chinese components or by Chinese-influenced companies.

To strengthen domestic capabilities, the order establishes a Maritime Security Trust Fund and a Shipbuilding Financial Incentives Program to provide consistent, long-term financing for MAP programs, possibly backed by tariffs, fees, or tax revenue. These initiatives aim to provide consistent funding for maritime programs and incentivize private investment in shipyard infrastructure.

The order also tackles cargo routing loopholes within the existing Harbor Maintenance Fee, implementing a 10% service fee on foreign cargo that enters through Canadian or Mexican borders to prevent circumvention of U.S. port fees.

To expand the U.S. commercial fleet, the Transportation Secretary must develop proposals within 180 days to increase the number of U.S.-flagged vessels in international trade and enhance subsidies for militarily useful commercial ships.

“The commercial shipbuilding capacity and maritime workforce of the United States has been weakened by decades of Government neglect,” the order states, emphasizing the need for immediate action.

The comprehensive action marks the arguably the most ambitious federal maritime revitalization effort in recent history and signals a significant shift in U.S. maritime policy, aiming to rebuild what the order describes as a “once strong industrial base” while addressing national security concerns and economic competitiveness in global shipping.

More on Key Highlights:

  • Industrial Base Revamp: The Department of Defense, in coordination with Commerce and Transportation, will assess how to use the Defense Production Act and private capital to scale U.S. shipbuilding, repair, and component manufacturing.
  • New Tariffs on Chinese Maritime Gear: The USTR is weighing new Section 301 tariffs targeting Chinese-built cranes and cargo handling equipment—possibly expanding to other shipyard machinery.
  • Fix the Harbor Maintenance Fee Loophole: DHS is tasked with cracking down on cargo routed through Canadian and Mexican ports to avoid U.S. port fees—potentially adding a 10% surcharge for inland customs clearance.
  • Incentivize Allies to Invest: The plan encourages shipbuilders from allied nations to invest in U.S. yards—with new incentives under review by the Commerce Department.
  • Maritime Security Trust Fund: A proposed new fund would provide consistent, long-term financing for MAP programs, possibly backed by tariffs, fees, or tax revenue.
  • Shipbuilding Incentives 2.0: Expect a legislative push to expand or overhaul Title XI loan guarantees, small shipyard grants, and other federal programs.
  • Maritime Prosperity Zones: Modeled on the Trump-era Opportunity Zones, these would target new investment in U.S. waterfront regions—especially beyond the traditional coastal shipyard hubs.
  • Mariner Pipeline Expansion: A sweeping education and workforce review will explore the creation of new merchant marine academies, credentialing reform, and scholarships for both Americans and allied nationals.
  • Cargo Preference Review: DOT and DHS will assess cargo preference laws, with an eye toward boosting U.S.-flag fleet utilization and reining in waivers.
  • Modernize the USMMA: The order fast-tracks overdue maintenance and a long-term campus overhaul for Kings Point.
  • Fleet Growth Mandate: A future legislative proposal will offer new incentives to expand the U.S.-flagged international fleet—including coverage of shipbuilding or conversion costs.
  • Arctic Strategy: DOD and DHS are to submit a dedicated strategy to boost U.S. Arctic presence and ice-class capability.
  • Inactive Reserve Fleet Overhaul: The Pentagon will review readiness and funding for surge sealift capacity.

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