Global Maritime Shift: How Trump’s Shipbuilding Plans will impact America and the World

By Patience Chat Moses
In early March 2025, President Donald Trump unveiled an ambitious plan to revitalize the United States’ shipbuilding industry. In a White House document released to journalists, Valuechain gathered that the move aims to counter China’s dominance in the global maritime sector. This initiative includes imposing substantial fees of about $1.5 million on Chinese-built vessels docking at U.S. ports, with the revenue intended to subsidize American shipbuilders. The strategy also proposes tax incentives and the creation of a White House Office of Shipbuilding to oversee these efforts.

“The White House is standing up an office at the National Security Council to lead a whole-of-government effort to strengthen the maritime industrial base,” the document said, following Trump’s announcement of the plans during an address to Congress.

According to Reuters, Trump’s initiative comes two months after the Biden administration concluded a nearly year-long probe requested by the United Steelworkers and other unions, which found that China uses unfair policies and practices to dominate the sector.

Michael Wessel, president of the Wessel Group, who helped coordinate that investigation under Section 301 of the Trade Act of 1974, said Trump’s announcement was an encouraging step forward after years of efforts by unions to revitalize the industry.

Potential Impacts on the Global Maritime Economy
Valuechain gathered from experts’ opinions published online that President Donald Trump’s plan to revitalize the U.S. shipping industry could heap massive costs on ocean transport operators and wake a new round of supply chain chaos around the world.

According to the World Shipping Council (WSC), which represents the liner shipping industry, the levies could hit virtually every ship calling at U.S. ports, foist up to $30 billion of annual costs on American consumers and double the cost of shipping U.S. exports.

“Policymakers must reconsider these damaging proposals and seek alternative solutions that support American industries,” WSC CEO Joe Kramek said.
Chief Executive Officer (CEO) of container ship owner Ocean Network Express (ONE), Jeremy Nixon said at the recent S&P Global’s TPM container shipping conference in Long Beach, California that the plan is a “curve ball” that could be very damaging for ocean carriers and their customers.

Other executives added that in the near term, ship owners could make fewer U.S. port calls to limit fees. A flood of extra cargo could clog up those ports, making it harder to get imports to retailers and manufacturers and exports on ships.

Also, concerns about the feasibility of U.S. shipbuilders competing with established Chinese counterparts in the near term have spurred up. The question now is, can the U.S. who contribute a mere 0.1% in shipbuilding blunt out China who currently leads the global shipbuilding industry with a 53% global tonnage as of last year?
Industry experts state that if the U.S. imposes tariffs on Chinese-built ships and provides incentives for domestic shipbuilding, it could lead to higher upfront costs for U.S. shipping firms and countries like South Korea and Japan, which already have strong shipbuilding industries, could benefit as shipping companies seek alternatives to Chinese-built ships.

Additionally, imposing hefty fees on Chinese-built vessels could lead to increased shipping costs, potential congestion at U.S. ports, and disruptions in global trade patterns. This could lead to inflationary pressure, especially on consumer products. Many global supply chains depend on Chinese-built cargo ships. Should China retaliate with similar measures, a disruption in availability or pricing could arise causing delays and higher logistics costs. For importing countries like Nigeria, inflation will lurk around waiting to bite harder than it’s already doing.

Implications for Nigeria’s Maritime Sector
Nigeria’s maritime industry holds significant potential, with estimates suggesting it could contribute approximately $44 billion annually to the nation’s Gross Domestic Product (GDP) if effectively governed with appropriate policies. However, the country has been losing out on the $50.3 billion global shipyard market due to moribund facilities and the lack of functional shipbuilding and repair yards. This deficiency forces Nigerian shipowners to seek repair services in neighbouring countries, resulting in substantial economic losses and capital flight.

The U.S. initiative to bolster its shipbuilding industry could have mixed effects on Nigeria. On one hand, it may inspire Nigerian policymakers to prioritize the revival of domestic shipbuilding and repair facilities, recognizing the strategic importance of a robust maritime sector. On the other hand, increased competition from a revitalized U.S. shipbuilding industry could pose challenges to Nigeria’s aspirations in this field. Furthermore, potential disruptions in global trade resulting from U.S. measures could indirectly affect Nigeria’s maritime trade, emphasizing the need for the country to strengthen its maritime infrastructure and policies to mitigate such external shocks.
Though China is yet to react to the US proposed plans, industry experts describe the situation as the start of a chess game with an oblivious end to both players and spectators