At the beginning of the year, U.S. President Donald Trump signed an executive order to revitalize the American maritime industry. The aim is to become more independent of China in economic and national security terms.
The golden era of U.S. shipbuilding is long past. During World War II, American shipyards produced over 2,700 cargo vessels, an average of three per day.
Today, the U.S. share of global production has shrunk to a symbolic fraction. While South Korea and Japan were early leaders, China has dominated the sector since the early 2000s, now accounting for over half of all newbuilds worldwide.
From legal loopholes to the need for billions in modernization
A current example of the structural weaknesses is the order for a new liquefied gas tanker. Officially, the ship was ordered from Hanwha Philly Shipyard, but it is largely being built in South Korea. The U.S. shipyard will only be responsible for compliance with American certification standards. This workaround is made possible by a complex corporate structure. Hanwha Shipping, a U.S. subsidiary of the South Korean shipbuilder Hanwha Ocean, is awarding the contract to its own parent company. While it may appear to be a domestic success, the project highlights the use of legal loopholes rather than signaling a true industrial revival.
There are also problems at the shipyards themselves. There are around 150 shipyards in the USA, but all of them are operating at their limits. Building new shipyards or modernizing existing ones would cost billions. It is estimated that converting a repair facility to produce a destroyer alone would cost several hundred million dollars.
Another problem is the lack of skilled workers. China produces hundreds of shipbuilding engineers with doctorates every year, whereas the USA produces only a few. China’s maritime universities work closely with shipyards. In contrast, the U.S. has hardly had any investment in young talent or technical training for decades.
China uses its shipyards for both the construction of merchant ships and warships. In the event of a conflict, civilian capacities could be converted immediately. This gives Beijing strategic advantages, particularly with regard to the Indo-Pacific.
With his strategy, Trump not only wants to strengthen industrial independence, but also create a maritime identity. Hanwha was present as the main sponsor at an important industry conference in the USA. There, Senator Mark Kelly, Democratic Senator from Arizona, spoke about the importance of independent US shipbuilding. As co-sponsor of the “SHIPS for America Act”, he sees the rebuilding of the maritime industry as a national task. But there remains a large gap between policy ambitions and the current industrial reality.
A glimmer of hope remains, as the USA is a leader in submarine and underwater warfare. The United States has a great deal of technological expertise, particularly in submarines. But this niche is not enough for a full maritime resurgence.
Just a symbolic gesture ?
At first glance, Trump’s initiative appears to be a bold industrial policy pivot. But decades of neglect, a lack of skilled workers, and inadequate investment leave the shipbuilding renaissance more symbolic than substantive. Without genuine infrastructure renewal and workforce development, the American shipyard revival risks becoming little more than a politically convenient illusion.
