Trump Unveils New Shipbuilding Office, Tax Incentives

US President Donald Trump announced plans to set up a shipbuilding office within the White House and introduce several new tax incentives for the industry.

In a 100-minute address to Congress last night in Washington, DC, Trump detailed the new shipbuilding strategy.

US media is now speculating that in the coming days, Trump will implement many of the measures recently proposed by the US Trade Representative (USTR) to counter China’s stronghold on the shipbuilding market.

According to The Wall Street Journal, an imminent executive order is expected to include 18 measures, such as increasing revenue from fees on Chinese-built ships and port cranes entering the US.

The USTR has put forward suggestions that include imposing fees of up to $1.5 million per port call for Chinese-built vessels, $1 million per port call for operators of these ships, along with enforcing US-flag shipping requirements.

Soren Toft, CEO of Mediterranean Shipping Co (MSC) – the world’s largest liner – commented on the USTR report at TPM, a container conference in Long Beach earlier this week, stating, “I think if it comes out in the present form, it’s going to have significant consequences. These costs either we will have to revise our network and withdraw our coverage or we will have to add that that cost on top of and ultimately the consumer will pay.”

Xclusiv Shipbrokers noted in a recent report, “If the USTR’s proposal moves forward, it is likely to create significant disruptions in the global shipping market, particularly in the tanker and container vessel segments, by leading to higher freight rates, which could fuel inflation and raise logistical costs for US businesses. Moreover, many shipowners may avoid US ports altogether to bypass the added costs, potentially leading to an imbalance in vessel supply and demand. This could strain global shipping capacity and result in higher costs for US trade, undermining the US government’s goals of boosting domestic production and strengthening exports.”

Currently, the US holds only about 1% of the global shipbuilding market share, in stark contrast to China’s more than 50% share, a figure that has increased tenfold this century.

During his lengthy address to Congress, Trump also continued his efforts to rename landmarks and even vowed to rename the Panama Canal, reiterating several inaccurate claims regarding its ownership.