Highlights
- President Donald Trump on April 9, 2025, signed an executive order (EO), "Restoring America's Maritime Dominance," that focuses on revitalizing the U.S. shipbuilding industry, strengthening the U.S. maritime workforce and expanding the American global shipping presence.
- The EO focuses on addressing national security concerns with a collaborative interagency approach to counter Chinese dominance in the maritime, logistics and shipbuilding sectors and outlines several important initiatives along with specific deadlines.
- The EO suggests adding tariffs on Chinese-linked ship-to-shore cranes and cargo handling equipment under the U.S. Trade Representative's Section 301 Investigation of China's Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance.
- A crucial part of the EO is the tasking of the Assistant to the President for National Security Affairs (APNSA) to develop a Maritime Action Plan (MAP) in coordination with several cabinet secretaries, a comprehensive strategy that must be submitted within 210 days.
A much-anticipated executive order (EO), "Restoring America's Maritime Dominance," issued on April 9, 2025, follows President Donald Trump's comments during his March 4, 2025, joint address to Congress, during which he vowed to "resurrect the American shipbuilding industry, including commercial shipbuilding and military shipbuilding." It also builds on many of the principles outlined in the Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act (SHIPS Act), which aims to support the national defense and economic security of the U.S. by supporting U.S. vessels, ports, shipyards and maritime workforce. That bill had garnered widespread industry and bipartisan support and was introduced in December 2024. It is reportedly expected to be reintroduced in Congress in the coming months, although the final text remains elusive. (For additional information, see Holland & Knight's Transportation Blog.)
In keeping with the current administration's approach to addressing key issues within the maritime sector, the EO is heavy on high-level, ambitious policy plans but light on details. Those looking for immediate directions from the White House may be disappointed as the EO instead sets forth a number of requirements for development of various plans, strategies, policies and reports.
Maritime Action Plan
The EO supports efforts to restore American maritime dominance in an industry that has become weakened by decades of government neglect. Only 0.2 percent of the world's ships are built by the U.S., compared to 74 percent built by China, as well as other shortfalls related to U.S.-built containers, ship-to-shore cranes and port operations software. To bolster U.S. efforts in these areas, President Trump has tasked the Assistant to the President for National Security Affairs – commonly known as the National Security Advisor – within 210 days of the date of the EO to coordinate with multiple agencies and submit a Maritime Action Plan (MAP) to "achieve the policy set forth in this order." The MAP will provide a strategy with specific actions to restore and create sustained resiliency for the American maritime industry, include key initiatives such as revitalizing the U.S. Merchant Marine Academy (USMMA), incentivizing domestic shipbuilding, enhancing infrastructure and capacity, growing demand for U.S. shipping, investing in maritime technology, enhancing workforce development and strengthening maritime security.
Under the MAP, the U.S. Department of Defense Secretary is directed to explore investment options to expand the Maritime Industrial Base. The assessment will explore the use of available authorities, including Defense Production Act Title III, and aim to maximize private capital investment. Key focus areas for investment include commercial and defense shipbuilding capabilities, supply chains, ship repair, marine transportation, port infrastructure and workforce development. The Defense Secretary is also instructed to utilize the Office of Strategic Capital loan program to enhance the shipbuilding industrial base. (See Holland & Knight's previous alert, "Department of Defense Announces New Loan Program for Critical Technology Projects," Oct. 4, 2024.) Furthermore, the assessment will identify essential maritime components in the supply chain for prioritization and ensure that investment recommendations are based on a clear metric of return on investment for U.S. taxpayers and national security. The recommendations will also consider projected increases in commercial and defense capabilities, anticipated economic growth and overall benefits to the U.S.
USTR Proposed Fees
As discussed in a previous Holland & Knight alert (see "U.S. Proposes Port Fees on Chinese-Built Ships and Operators to Counter China's Shipping Dominance," March 5, 2025), pursuant to section 301 of the Trade Act of 1974, the USTR has proposed new fees on vessels operated by Chinese ship operators or built in China, calling on U.S. ports as a means to counter China's dominance in the maritime sector and bolster U.S. shipping interests. The EO refers to that USTR docket, during which on Feb. 21, 2025, the USTR proposed to impose significant fees on Chinese-built and -operated vessels. Though these USTR proposals were proposed actions or series of potential revenue to address a lack of shipbuilding in the U.S., USTR Jamieson Greer told a U.S. Senate Finance Committee hearing on April 8, 2025, that not all of the agency's proposed fees for Chinese-built ships to dock at U.S. ports will be implemented and may not be cumulative. Fine-tuning and careful calibration of these policies of the U.S. are needed to avoid inadvertently penalizing the many shipowners and charterers of Chinese-built vessels, who themselves are neither owned nor controlled by China or Chinese interests.
Relevant here, the EO directs the USTR to also consider taking all necessary steps permitted by law to propose 1) tariffs on ship-to-shore cranes manufactured, assembled or made using components of People's Republic of China (PRC) origin or manufactured anywhere in the world by a company owned, controlled or substantially influenced by a PRC national, and 2) tariffs on other cargo handling equipment. As the industry awaits announcements on these actions, the EO carefully suggests additional considerations with respect to the actions – "if any" – that the USTR determines to take and coordinate with the U.S. Attorney General and U.S. Department of Homeland Security Secretary to take appropriate steps to enforce any restriction, fee, penalty or duty imposed pursuant to such actions.
Initiatives and Deadlines
A key characteristic of the EO is the implementation of several initiatives with prescribed deadlines from the date of the EO for respective cabinet secretaries and agency heads who shall:
- Within 30 days:
- Take action to hire the necessary facilities staff and reprogram budgetary resources needed to execute urgent deferred maintenance projects and any other mission-critical repair works at the USMMA.
- Finalize and submit a long-term master facilities plan for the modernization of the USMMA campus.
- Conduct a review of regulations across all components pertaining to the domestic commercial maritime fleet and maritime port access to determine where each agency may be able to deregulate.
- Within 45 days:
- Submit a report with recommendations to increase the number of participants and competitors within U.S. shipbuilding and reduce cost overruns and production delays for surface, subsurface and unmanned programs.
- Within 90 days:
- Engage treaty allies, partners and other like-minded countries and deliver an engagement plan and progress report on these engagements to President Trump.
- Recommend all available incentives to help shipbuilders domiciled in allied nations partner to undertake capital investment in the U.S. to help strengthen the country's shipbuilding capacity.
- Deliver a plan that identifies opportunities to incentivize and facilitate domestic and allied investment in U.S. maritime industries and waterfront communities through establishment of maritime prosperity zones.
- Deliver a report that inventories federal programs that could be used to sustain and grow the supply of and demand for the U.S. maritime industry.
- Deliver a report to President Trump through the APNSA for inclusion in the MAP with recommendations to address workforce challenges in the maritime sector through maritime educational institutions and workforce transitions.
- Submit a five-year capital improvement plan (CIP) related to the USMMA.
- Develop a proposal for improved acquisition strategies processes for U.S. government vessels and begin a separate review of vessel procurement processes and deliver a proposal to President Trump.
- Develop a strategy that identifies the vision, goals and objectives necessary to secure arctic waterways.
- Conduct a review and issue guidance on the funding, retention, support and mobilization of a robust inactive reserve fleet.
- Within 180 days:
- Provide assessment of options for the use of available authorities and resources to invest in and expand the Maritime Industrial Base.
- Deliver a legislative proposal that is designed to ensure that adequate cubed footage and gross tonnage of U.S.-flagged commercial vessels can be called upon in times of crisis.
- Withing 210 days:
- Develop a MAP to achieve the policy set forth in the EO to include the Buy American Act and to reflect actions taken pursuant to the EO.
Overall, the EO emphasizes coordination within the interagency. For example, while President Trump's nominee for Maritime Administrator, Brent Sadler, awaits confirmation, U.S. Department of Transportation Secretary Sean Duffy has offered statements in support of the Maritime Administration efforts under the EO that will include a shipbuilding financial incentives program, so-called Maritime Prosperity Zones, growing demand for U.S. shipping, expanding mariner training and education, improving procurement efficiency and delivering strategic commercial fleet program proposal.
Conclusions
The EO is a positive signal that the long-neglected U.S. maritime sector has the attention of the White House. The EO is replete with aspirations but short on details as the industry awaits the results of the various reports with which agencies are tasked, in particular as it relates to the funding and investment opportunities for shipbuilding, that follow President Trump's promises at the EO signing that the Trump Administration will be spending "a lot of money on shipbuilding."
Perhaps most relevant to the maritime sector remains the unanswered questions with the USTR-proposed fees that could impact owners and operators of Chinese-linked vessels – and the impact on those fleets approach – that will undoubtedly guide operational decision-making. The EO also seeks to capture the Harbor Maintenance Fee (HMF) or potential USTR fees on Chinese-built and operated vessels that transship U.S. imports through Canada or Mexico, adding complexities to operational options. Thus, there is a very real "stay tuned for more" tone in the EO as the USTR docket on proposed fees remains open and a clear maritime policy will be revealed in the coming months.
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