Trump's efforts to revive U.S. shipbuilding slowed by inconsistent policies, leadership gaps, funding shortfalls
Published: 07 Jul. 2025, 10:57
Updated: 08 Jul. 2025, 15:08
Audio report: written by reporters, read by AI
![U.S. President Donald Trump gestures on the day he attends an event hosted by America250 in Des Moines, Iowa, on July 3. [REUTERS/YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/07/08/9bd6ae0a-6c97-4970-a076-33687b94d3c6.jpg)
U.S. President Donald Trump gestures on the day he attends an event hosted by America250 in Des Moines, Iowa, on July 3. [REUTERS/YONHAP]
The United States is pushing to revive its shipbuilding and maritime shipping sectors to curb China’s expanding global power projection.
However, inconsistent policies under U.S. President Donald Trump’s second term have turned out to be more of an obstacle than a support, according to a report by The Wall Street Journal.
The White House National Security Council (NSC), which had established a new office dedicated to maritime policy, has seen its staff shrink from seven to just two, The Journal reported Wednesday.
The office was intended to act as the main coordinating body, crafting and overseeing plans to rebuild the country’s shipbuilding and maritime industries.
The NSC itself has been scaled down under Trump’s second term.
Former NSC staffers who served during Trump’s first presidency have spoken out critically against him, which reportedly soured the agency’s standing with Trump’s close allies.
Meanwhile, Secretary of State Marco Rubio has strengthened the State Department’s grip on foreign policy, further diminishing the NSC’s influence.
Efforts to repeal shipbuilding regulations in the United States have recently stalled, according to experts.
Bills aimed at repealing the Jones Act — known as the Merchant Marine Act of 1920 — have been introduced in both chambers of the U.S. Congress, but their prospects for passage remain unclear. The Jones Act mandates that merchant vessels operating between U.S. ports must be built in the United States. Although lawmakers have attempted to repeal the law multiple times in the past, such efforts have repeatedly failed due to opposition from the U.S. shipbuilding industry and regional political interests.
“For Korean shipbuilders to enter the U.S. shipbuilding market, regulations such as the Jones Act need to be eased, but discussions on the matter are progressing very slowly,” said Yang Jong-seo, a senior researcher at the Export-Import Bank of Korea.
![Hanwha Group acquired a 100 percent stake in Philly Shipyard, located in Philadelphia, in 2024. [HANWHA OCEAN]](https://koreajoongangdaily.joins.com/data/photo/2025/07/08/e3e12c47-7494-48c9-a512-477d76d0563c.jpg)
Hanwha Group acquired a 100 percent stake in Philly Shipyard, located in Philadelphia, in 2024. [HANWHA OCEAN]
Against this backdrop, Korean shipbuilders seeking to secure infrastructure in the United States have been struggling with facility upgrades. Hanwha Ocean’s Philly Shipyard in Philadelphia, which it acquired in December last year, has two docks, but one has been out of use for years and is reportedly in poor condition. Securing skilled local labor is another major challenge. Warships supplied to the U.S. Navy are classified as defense articles and can only be built by workers with U.S. citizenship.
“Even when we hire locally, many workers quit, and the turnover rate has reached nearly 100 percent,” said an executive at a Korean shipbuilding company. “Moreover, most are not highly skilled, and we constantly face issues like drug use.”
“While cooperation with the United States in shipbuilding clearly presents a major opportunity for Korea, expecting quick progress is nothing short of a myth. The focus should be on building long-term partnerships,” said Kim Yong-hwan, a professor of naval architecture and ocean engineering at Seoul National University.
Analysts also note that Trump’s various policies often conflict, undermining the effort to revitalize the shipbuilding and shipping sectors.
His administration dismantled the U.S. Agency for International Development (USAID) and slashed food aid programs — moves that have particularly impacted the shipping industry.
Shipping companies have relied on the Food for Peace program that provided cargo and revenue for U.S.-flagged carriers, but might have to start laying up ships and laying off seafarers if it isn't resurrected, industry officials told The Journal.
![The future USS Gabrielle Giffords (LCS 10), is shown during its launch sequence at the Austal USA shipyard in Mobile, Alabama, in this Feb. 25, 2015 U.S. Navy handout photo. [REUTERS/YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/07/08/1ef55ef4-e628-4a08-b4cc-e9cdbf10dc6f.jpg)
The future USS Gabrielle Giffords (LCS 10), is shown during its launch sequence at the Austal USA shipyard in Mobile, Alabama, in this Feb. 25, 2015 U.S. Navy handout photo. [REUTERS/YONHAP]
Leadership gaps are compounding the problem. Trump nominated Stephan Karmel, a former executive at the shipping giant Maersk Line, to head the Federal Maritime Commission, but the Senate has yet to confirm him.
The U.S. Navy’s top acquisition post — which oversees warship construction — hasn’t even had a nominee.
The two roles are essential to implementing maritime executive orders, Brent Sadler, a maritime specialist at the Heritage Foundation, told the paper.
“There’s a probability things are going to get stalled before they get underway," Sadler said.
Funding is another point of contention. Critics note that the Navy’s proposed budget for fiscal 2026 allots less than $21 billion for ship construction, down from $37 billion the previous year.
The failure to include the usual procurement of destroyers in the budget request "destabilizes industry, shows bad faith and slows our shipbuilding efforts,” Sen. Roger Wicker, a Republican who chairs the Senate Armed Services Committee, said.
The White House, however, argues the picture is more favorable when broader defense funding in its One Big Beautiful bill is factored in.
Russ Vought, director of the White House Office of Management and Budget, said the total shipbuilding budget for 2026 is $47.4 billion, roughly a 21 percent increase over last year.
Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY HA SU-YOUNG, OH SAM-GWON [[email protected]]
with the Korea JoongAng Daily
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