To ‘resurrect’ US shipyards, President Trump vows to create Office of US Shipbuilding

In a speech to Congress on 4 March, President Trump vowed to “unleash American energy” by increasing oil and gas leasing and “resurrect the American shipbuilding industry” by providing tax incentives and creating an office of shipbuilding.

“To boost our defence industrial base, we are also going to resurrect American shipbuilding, including commercial shipbuilding and military shipbuilding,” the US President said.

“And for that purpose, I am announcing tonight that we will create a new office of shipbuilding in the White House and offer special tax incentives to bring this industry home to America, where it belongs,” he said.

The announcement came in the same week in which the US President went ahead with plans for tariffs on geographical neighbours Canada and Mexico and raised planned tariffs on China to at least double the 10% rate he imposed in February. 

Additionally, according to a report in The Wall Street Journal, a draft executive order from President Trump includes 18 measures to impose fees on Chinese-built ships calling at US ports and establishment of a National Security Council to strengthen the American maritime sector. 

Not surprisingly, the American shipbuilding industry were supportive of the creation of an Office of US Shipbuilding. In a social media post, Shipbuilders Council of America president Matthew Paxton said the US shipyard base “stands at the ready to work with the new Office of US Shipbuilding.”

The American Waterways Operators, which represents tug, towboat and barge owners and operators in the US, issued a statement saying, "The American tugboat, towboat and barge industry welcomes President Trump’s focus on American shipbuilding and maritime commerce as a pillar of our nation’s prosperity and security. Strong American shipyards are vital to the domestic supply chain and to the fleet that propels it, and we look forward to working with the President to support these efforts.”

Eastern Shipbuilding Group, which builds both commercial and government vessels, said, "American shipbuilders have a heritage of delivering advanced vessels that power our economy and safeguard our shores."

Last year, the SHIPS Act was filed to boost American shipbuilding and the US-flag, Jones Act fleet.