President Trump and members of Congress want to revive U.S. shipbuilding. The United States accounts for under 1% of global commercial ship production, while China is responsible for approximately half of the worldwide output. Over the past decade, China has constructed more than 6,765 commercial vessels, surpassing Japan’s output of 3,130 ships and South Korea’s total of 2,405 ships, according to data by BRS Shipbrokers. By comparison, the U.S. produced only 37 commercial ships during the same period.

Bipartisan legislation—the Shipbuilding and Harbor Infrastructure for Prosperity and Security (SHIPS) for America Act (H.R. 3151/S. 1541)—was recently introduced in both chambers which seeks to address the need to strengthen America’s shipbuilding capacity and commercial maritime industries. Specifically, it aims to: (A) establish national oversight and consistent funding for U.S. maritime policy; (B) rebuild the U.S. shipyard industrial base; (C) make U.S.-flagged vessels more commercially competitive through de-regulation; and (D) expand and strengthen the maritime labor force. It also sets a goal for establishing a fleet of 250 U.S.-flagged vessels in international commerce over the next decade. The chief sponsors include Senators Todd Young (R-Ind.) and Mark Kelly (D-Ariz.), along with Representatives Trent Kelly (R-Miss) and John Garamendi (D-Calif.).

“AFS proudly supports the SHIPS for America Act as a vital investment in America’s shipbuilding strength, maritime security, and economic resilience, and we thank the bill’s sponsors who are raising the bar for this critical industry,” CEO Doug Kurkul said. Restoring U.S. commercial shipbuilding could significantly aid domestic manufacturers, including U.S. metalcasters, by creating new demand for materials and components, including pipes, fittings, pumps, valves, engines, any many other critical castings.
The SHIPS for America Act complements the administration’s Section 301 action with strategic investments in U.S. shipbuilding capacity and workforce through the creation of a Maritime Security Trust Fund funded with collected duties and fees under the Section 301 action. It also aligns with some of the goals in President Trump’s Executive Order (EO) 14269, “Restoring America’s Maritime Dominance”, issued on April 9, 2025, which seeks to address national security concerns with a collaborative interagency approach to increase U.S. competitiveness in the shipbuilding and maritime sector.

Key provisions of the SHIPS for America Act include:

Tax Credits and Financial Assistance

•    Establish a 25% tax credit for investment in qualifying domestic shipyard facilities and a 33% tax credit for investment made by a taxpayer to construct, repower, or reconstruct an eligible oceangoing vessel in the U.S. Qualifying facilities for the 25% investment credit would include both civil and military shipyards and manufacturing facilities dedicated to making critical components for those vessels.
•    Convert the Title XI Federal Ship Financing Program into a revolving fund, establish a Shipbuilding Financial Incentives program to support new approaches to domestic ship building and ship repair, and expand eligibility under the Department of Energy’s loan guarantee program to support investments in U.S.-flag vessels, shipyards, marine terminals, and port facilities.

Maritime Security Board and Maritime Security Trust Fund

•    Establish a specific Maritime Security Trust Fund to ensure steady financing for the maritime program. The fund would be financed from the reinvestment of duties and fees paid by the maritime industry, including taxes and penalties collected by U.S. Customs and Border Protection. These fees would include the new U.S. penalty on vessels that are owned or operated by China that became effective on Oct. 14.
•    Create a White House Maritime Security Advisor and work the Maritime Security Board to implement a National Maritime Strategy coordinating the domestic marine transportation system.

Expansion of Cargo Preferences

•    Expand cargo preference requirements across both governmental and private shipping.
•    Raise the percentage of U.S. government cargo that must sail on U.S.- flagged vessels from 50% to 100%, and establish a commercial cargo preference, requiring that within 15 years, 10% of all cargo imported into the U.S. from the People’s Republic of China be imported on U.S.-flagged vessels.

AFS is urging lawmakers to co-sponsor and quickly enact the SHIPS for America Act during the 119th Congress.

New Tariffs Imposed on China 

Just days before shipping fees were slated to take effect, the Office of the U.S. Trade Representative (USTR) announced several changes to new fees on Chinese-owned or -operated vessels, Chinese-built vessels, and foreign-built vehicle carriers entering U.S. ports. The alterations included changing the basis for calculating service fees on vessel operators of foreign-built vehicle carriers and setting the fee at $46 per net ton, effective Oct. 14, and imposing tariffs of 100% on imports of certain ship-to-shore cranes and cargo handling equipment, effective Nov. 9.

Scheduled to increase significantly at regular intervals over the next three years, the fees are being imposed following USTR determination that China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance is unreasonable and burdens or restricts U.S. commerce and is therefore actionable under the Section 301 trade law