US President Donald Trump has passed an executive order to revitalise US shipbuilding while curbing China’s stronghold over the global shipping industry.
“We’re way, way, way behind,” said Trump, speaking in the Oval Office. “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.”
Democrats and Republicans mobilised in support of the order with Senator Mark Kelly, Democrat, and Todd Young, Republican, committing to reintroduce their bipartisan legislation to enable the congressional approvals required for the industry’s revitalisation.
The order must be completed by the 17 April deadline.
Despite initial skepticism and concerns over subsequent supply chain disruptions, the order gives the U.S. Trade Representative (USTR) the go-ahead with its proposal of levying million-dollar U.S. port docking fees targeted at ships belonging to a fleet that includes Chinese-built or flagged vessels. However, stipulated remedies will not be identical to USTR’s original proposal, according to USTR Jamieson Greer.
“This could have been a miscommunication issue; some people thought that all of those measures would be imposed,” Greer said. “Now we consider which of those measures is most appropriate.”
The order also directs the USTR to consider proposing tariffs on STS cranes and other cargo handling equipment with any trace of Chinese origin in its production, alongside those manufactured by companies controlled or substantially influenced by Chinese citizens, media reported.
The Department of Homeland Security will also be required to enforce Harbor Maintenance fees and other charges while preventing attempts by cargo carriers from circumventing those fees through transporting cargo through alternative routes.
Trump’s executive order called for establishing a Maritime Security Trust Fund to provide reliable funding for programmes targeted at galvanising US maritime capacity. It also encouraged private investment in the construction of commercial components and improvements to shipyards, repair facilities and dry docks.
Following the heights reached in the 70s, US shipbuilding has since seen a decline due to high costs and a complex regulatory structure, which left an expanding vacuum for competitive nations, such as China, to fill.
China’s Foreign Ministry condemned the order with Ministry spokesperson, Lin Jian, asserting that: “The development of China’s shipbuilding industry is the result of technological innovation and active participation in market competition by enterprises.”
Earlier this year, Trump appointed Louis E. “Lou” Sola as Chairman of the Federal Maritime Commission (FMC).