Trump boosts US shipbuilding against China; DOGE reviewing Navy

• President Donald Trump launched a maritime initiative to boost domestic shipbuilding and counter China’s control of global shipping lanes. His executive order directs a review of struggling military and commercial vessel programs.
• The U.S. Navy, Coast Guard and other agencies must assess their production systems and draft a national maritime strategy by November 2025.
• Officials also intend to implement new fees and possible tariffs to bolster U.S. industry and deter cargo circumvention through neighboring ports.

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President Donald Trump signed an executive order Wednesday, April 9, to overhaul U.S. shipbuilding and reduce China’s control over global shipping.

The order directs Elon Musk’s Department of Government Efficiency to review struggling military and commercial shipbuilding programs. That includes the Constellation-class frigate project, which has faced delays and budget issues.

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The U.S. Navy and Coast Guard must assess their procurement and production systems within 45 days. The directive also requires several federal agencies to deliver a Maritime Action Plan by November 2025. That plan will outline policy changes and new investment strategies to expand U.S. capacity in shipbuilding and port operations.

What trade and tariff changes are included?

The executive order calls for new port fees on ships tied to Chinese ownership or construction. According to Reuters and White House sources, additional measures may include tariffs on imported shipbuilding equipment and stricter enforcement of harbor-related charges.

Officials said the goal is to prevent companies from rerouting cargo through Canada or Mexico to avoid U.S. port fees. The U.S. Trade Representative will also review possible tariffs on cranes and other cargo-handling equipment made with Chinese components or under Chinese ownership.

What does the administration say is at stake?

The White House cited data from the Center for Strategic and International Studies showing the U.S. produces fewer than 1% of the world’s commercial ships while China builds roughly 50%. Officials argued the imbalance threatens U.S. economic independence and military readiness.

The executive order creates a Maritime Security Trust Fund to address the shortfall and offers new financial incentives to attract private investment in shipyards, dry docks and mariner training.

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How have lawmakers and industry leaders reacted?

The Shipbuilders Council of America praised the order as a potential turning point for domestic shipbuilding. Its president, Matthew Paxton, said the plan offers a path to rebuild industrial capacity.

However, some lawmakers questioned whether Musk’s DOGE office has the resources or expertise to solve deeper issues like labor shortages and aging infrastructure. The order follows years of bipartisan concern over U.S. naval readiness and China’s growing dominance in global logistics.