U.S. President Donald Trump announced on Tuesday plans to establish a new office of shipbuilding within the White House, offering tax incentives to support commercial and military shipyards.
The initiative aims to revive the U.S. shipbuilding industry and reduce reliance on foreign production.
The announcement follows concerns about delays and issues within the U.S. shipbuilding sector, particularly in the Navy. Lawmakers, including Senator Roger Wicker, have criticized the industry for being behind schedule and over budget.
Matthew Paxton, President of the Shipbuilders Council of America, expressed support for the new office and highlighted the need for cooperation between industry and government.
In addition to the shipbuilding initiative, Trump discussed efforts to regain control over the Panama Canal, noting a deal in which an American hedge fund acquired control of the container terminals on either side of the waterway. The move is part of broader efforts to enhance U.S. influence over key global trade routes.
The Trump administration’s focus on U.S. shipbuilding comes amid increasing competition from China, which dominates global ship production. The U.S. industry currently builds only five ships per year, compared to China’s 1,700.
The U.S. government has also taken steps to penalize Chinese-built ships calling at U.S. ports, aiming to strengthen domestic production.
The revival of U.S. shipbuilding is part of broader legislative efforts, such as the SHIPS for America legislation introduced in 2024, which seeks to bolster the industry. Ongoing tensions with China over industrial policies and maritime trade will likely continue to influence U.S. policy in the sector.
