New shipbuilding measures help correct course for U.S. maritime supply chain

The United States Trade Representative (USTR) announced on Thursday that it will push back against China’s dominance of the global maritime supply chain, targeting the unfair and anti-competitive non-market practices that have gravely damaged U.S. manufacturers, workers and the U.S. economy. The agency will phase in escalating fees on Chinese-built vessels and foreign-built car carrier vessels.

Alliance for American Manufacturing (AAM) President Scott Paul said:

"The largest obstacles to shipbuilding in the United States are the unfair trade and economic practices of China. While no nation should be faulted for seeking to develop maritime capabilities, Beijing's ambitions go well beyond that. Our nation's shipbuilders and workers deserve a level playing field and haven't had one for decades. We thank the United Steelworkers and their labor partners for initiating this groundbreaking case.

"These measures, coupled with strategic investments in our maritime supply chains and workforce, open new opportunities to revitalize a critically important sector. We look forward to working with the administration and bipartisan supporters in Congress to make sure that this effort is a success."

The USTR's announcement follows the agency's Jan. 16 report that China has unfairly advantaged its maritime, logistics and shipbuilding industries through non-market policies and warrants "urgent action." Also, on April 9, the President signed an executive order directing his National Security Advisor to work with various government agencies to develop a Maritime Action Plan that assesses how available authorities and resources can be used to invest in and expand the maritime industrial base.

New polling shows widespread agreement among Americans on U.S. shipbuilding:

• The vast majority of Americans (72%) agree that the United States cannot remain dependent on foreign manufacturers to build ships, and more than two in three survey respondents (68%) agree that our nation's ability to build ships for both commercial and military needs is a matter of national security.
• Most Americans (71%) want the U.S. government to invest in the U.S. shipbuilding industry.
• The bulk of Americans (70%) agree that using Chinese-built drydocks to repair, maintain and retrofit our military vessels threatens U.S. national security.
• Two in three Americans (66%) agree that the U.S. government should invest in our nation's shipbuilding industry to protect national security.
• A strong majority of Americans (56%) wants a percentage of U.S. exports to be required to be carried on U.S.-built vessels with U.S. crews.
• By a 30-point margin, 49% of Americans support implementing a docking fee on Chinese vessels.

Morning Consult conducted the poll in March on behalf of AAM.

Background:

Paul testified before the USTR on March 24 for its proposed shipbuilding remedies hearing. Read his oral and written testimony.

The U.S. was once the world's leading shipbuilder. However, decades of neglect coupled with unfair competition with Chinese shipyards has toppled the U.S. ranking to 19th in the world. At its peak in 1975, U.S. shipyards built more than 70 ships a year. Now, they produce fewer than five each year. Meanwhile, China is producing more than 1,700 ships annually.

On March 12, 2024, five national labor unions led by the United Steelworkers petitioned the USTR to launch its investigation, which AAM supported. The USTR initiated a Section 301 investigation in April 2024 and issued its finding on Jan. 16 that China has unfairly advantaged its maritime, logistics and shipbuilding industries through non-market policies and warrants "urgent action."

Paul is available for interviews.