Inside Trump’s plans to make U.S. shipbuilding industry great again

President Donald Trump The United States has pledged to lead the revival of American shipbuilding, but the success of this manufacturing renaissance in a key national security sector will depend on expertise from abroad.

The administration’s goal of a shipbuilding boom is part of Trump’s “Make America Great” policy agenda. Trump signed on Executive order In April to support the shipbuilding industry, but many industry executives did He warned that it will not be easy Given the current situation of the domestic industry, foreign investment and cooperation are essential. The Trump administration’s “Make America Shipyards Great Again” initiative looks to build liquefied natural gas carriers, polar icebreakers, and naval vessels.

“The U.S. shipbuilding industry has boomed twice in the past 110 years,” Peter Sand, senior shipping analyst at Zeneta, told CNBC. He said: “The first boom was during World War I, and the second, during World War II.”

China, which has approx 232 times the shipbuilding capacity The United States dominates the global commercial shipbuilding industry. The United States currently has eight active shipyards. China has more than 300.

The Trump administration’s shipbuilding plan is an extension of the shipbuilding plan investigation In Chinese shipbuilding by the US Trade Representative under the Biden and Trump administrations. the USTR 301 investigation It found that the Chinese government has consolidated its dominance in shipbuilding by using large subsidies and classifying the industry as strategic. The investigation said the actions, policies and practices were “unreasonable and represent a burden or restriction on U.S. commerce.”

The United States recently started Imposing duties on ships built in China Visiting American ports resulting in Retaliatory measures from ChinaBut the two countries agreed to a one-year temporary pause as part of a trade truce in November.

In 2008, China surpassed Japan in shipbuilding production. In 2010, China overtook South Korea to become the world’s largest shipbuilder, both in terms of production capacity and new orders. Since then, China’s leadership has continued to grow. that it Global market share In shipbuilding it is 53%, followed by South Korea and Japan.

The 2025 new ship order book shows that China accounts for 75 percent of orders, South Korea 19 percent, and the United States 0.2 percent, according to data shared by Sand.

“When you look at the orders, making American shipbuilding great again is difficult,” Sand said. “Foreign expertise must be brought in.”

Major foreign companies involved in American shipbuilding

To boost shipbuilding in the country and train American workers, the Trump administration has signed deals with foreign shipbuilders.

Three shipbuilding subsidiaries of South Korea-based Hanwha Group, the world’s third-largest shipbuilder, are playing a key role in the plan.

During trade negotiations in July, South Korea and the United States announced $350 billion Investment dealWith $150 billion of that money allocated to maritime investment. the Comprehensive business deal It was completed in November, with tariffs on US imports from Korea reduced to 15% (from 25%).

“Why should you reinvent the wheel? There’s good reason for friends and allies to work together and leverage the company’s expertise and experience,” Sand said.

South Korea began increasing its presence in the US marine industry in 2024 by $100 million acquisition From Philadelphia Shipbuilding in Philadelphia from Norwegian industrial investment group Aker ASA. The name of the yard was then changed to Hanwha Philly Shipyard.

In August, Hanwha Group announced a $5 billion infrastructure plan, part of a $150 billion investment, for Hanwha Philly Shipyard to modernize the site so it can expand its shipmaking capacity from 1 to 1.5 ships per year, and eventually to 20 ships.

Hanwha Philly Shipyard received its first order for a US-made export-ready LNG tanker from Hanwha Shipping, the shipping arm of the Hanwha Group, in July. This was the first order in nearly 50 years. The second order for the LNG ship was placed in August. Delivery is expected to take place around 2028 and will be made possible through a joint construction model with Hanwha Ocean’s Geoje Shipyard in South Korea. The co-build model is necessary due to the Philadelphia shipyard’s lack of shipbuilding capacity and personnel.

Hanwha Ocean builds 50 to 60 ships a year.

“One of the challenges the industry faces is manpower,” said David Kim, CEO of Hanwha Phili Shipyard.

The biggest bottleneck in workforce training is a shortage of American trainers, Kim says. To address this problem, Hanwha will train employees by rotating its American workforce from Philadelphia to the yard in South Korea. “It’s our greatest advantage,” Kim said. “The good people you want to train American workers are the people who work in the yard,” he added.

The company is also looking to expand its apprenticeship programme.

“We have 1,700 workers so far,” Kim said. “If you look at our aspirations to deliver those 20 ships a year, our future staff will be closer to more than 10,000,” he added.

Oil and liquefied natural gas create demand for American cargo ships

The LNG vessel orders are not the only ones Hanwha has on the Philadelphia shipyard’s books. Hanwha Shipping Company also ordered 10 medium-range tankers used to transport oil and chemicals The largest US merchant ship order in more than two decades. The first ship is expected to be launched in 2029.

“There are currently 55 Jones Act oil tankers in the world, and 7,500 oil tankers in the world,” said Andy Lipow, president of Lipow Oil Associates.

The Jones Act requires that ships transporting goods between U.S. ports be built, owned, crewed and craned in the United States.

“In LNG, the U.S. shipbuilding industry is, for all intents and purposes, not participating,” Lebow said. He added that there are approximately 750 LNG carriers in the world, and there is only one LNG carrier that flies the US flag, “and it was built in France.”

But the shortage of US-manufactured tankers has not affected the growth of US LNG or crude oil exports.

“The US LNG market is not at a disadvantage. We currently export approximately 30% of our crude oil production and have no problem finding tankers,” Lebo said.

Naval nuclear ambitions

During Trump’s recent tour of Asia, the president announced that Hanwha would manufacture it The first nuclear-powered submarine at the Philadelphia shipyard. Hanwha Corporation manufactures large naval submarines in South Korea.

“The United States needs its own shipbuilding and submarine capability for its own security and resiliency,” said Alex Wong, chief global strategy officer of Hanwha Group. “God forbid, in times of war, you need the ability to refit and make a sea vessel,” Wong said. “This is how you not only win a war, but also deter a war.”

In August, Trump ordered Movement of two nuclear submarines In response to Russian threats.

The timing of the submarine’s construction at Hanwha Philli Shipyard depends on ongoing discussions between the South Korean government and the United States.

“It is also important at that time that the technology and resources are available,” Kim said.

The US Navy continues to build its technological infrastructure. Navy and Palantir Technologies Recently announced ShipOS. Which they said would help build and maintain American submarines. The software could also be used in the future for aircraft carriers and jet aircraft.

An Italian shipbuilder with ties to Wisconsin also plays a role

In addition to South Korea, Finnish and Italian companies are also being tapped to expand US shipbuilding. Italian Prime Minister Giorgia Meloni reiterated in a joint statement with Trump the country’s commitment to building American ships at the April meeting.

The main Italian company in this initiative is Fincantieri Marinette Marine (FMM)which was founded in Wisconsin in 1942 as Marinette Marine to build World War II naval ships before it was later acquired by the Italian company. President Trump toured the company’s shipyard in Wisconsin during his trip First semester.

company recently 93 employees laid offabout a week after the Navy canceled orders for four frigates that were scheduled to be built in Wisconsin. Instead of building six, the company will now build two.

In addition to marine, Fincantieri also manufactures LNG and other commercial vessels, such as cruise ships. Wisconsin’s shipyards are among the newest and most advanced.

“There are many hands here touching the ship,” said George Motavis, CEO of Fincantieri Marine Group. “Nearly 3,000 employees are involved in joint work across the three arenas.”

The network of suppliers for ship components or materials increases the total employment related to shipbuilding.

“We have about 800 suppliers in 40 states, with 300 of those suppliers located here in Wisconsin and Michigan,” Motavis said. “So building ships requires a village and more,” he added.

Race to control the Arctic

The United States is also lagging behind in the shipbuilding race for polar icebreaker ships. The U.S. Coast Guard owns three icebreakers. Russia has the world’s largest polar fleet, with 57 icebreakers and ice-capable patrol vessels, as of 2022 data. China has five icebreakers.

One of the American ships, Polar Star, was classified as a heavy icebreaker and deployed to Antarctica. This vessel is 49 years old. Two medium icebreakers, USCGC Healy (25 years old) and USCGC Storis (built 2012, acquired By the USCG in 2024, and revised), they are classified as medium-sized icebreakers and are used on the Arctic route.

The US government’s push into the Arctic is linked to Defense considerations. The Northern Sea Route follows the Russian Arctic coast, while the Northwest Passage, which crosses the Canadian Arctic Archipelago, reduces travel time between North America and Europe by several weeks. If ships did not use this polar route, ships would have to circumnavigate North America and travel across the Pacific Ocean Panama Canal Or the Suez Canal.

In the future, the Transpolar Sea Route, a mid-ocean route through the central Arctic, offers the shortest distance but requires heavy icebreakers and is largely ice-covered. To fill the gap in polar icebreaker production, the United States is turning to Finland, which is known as the leading country in the manufacture and design of polar icebreakers.

On October 9, the United States and Finland signed a memorandum of understanding on the construction of the White House icebreaker. The $6.1 billion agreement stipulated that the U.S. Coast Guard would acquire 11 new icebreaking vessels. Under the agreement, Finnish shipyards Helsinki Shipbuilding (owned by Canada-based Davey Defense) and Rauma Marine Constructions will build four Arctic security cutter ships while US shipyards will build an additional seven. The first icebreaker is scheduled to be delivered in 2028.

In November, a joint Statement of Intent between the United States, Canada, and Finland to enhance shipbuilding and defense cooperation in the Arctic was announced under the Charter for Icebreaker Cooperation Efforts (ICE), which was first announced in July 2024 by President Biden, then-Canadian Prime Minister Justin Trudeau, and Finnish President Alexander Stubb at the NATO Summit in Washington, D.C.

In early December, Davy acquired Gulf Copper and Manufacturing Company Shipbuilding origins In Port Arthur and the Port of Galveston, Texas, it was approved by the Committee on Foreign Investment in the United States, which reviews foreign takeovers for national security reasons.