President Donald Trump has developed an intense focus on shipbuilding, even texting about rust issues late into the night, according to John Phelan, his nominee for Navy secretary. He has also floated the idea of creating a White House shipbuilding office that would oversee both commercial and military sectors, though details remain scarce.
Trump’s push for shipbuilding comes at a critical time. The U.S. shipbuilding industry has faced years of decline, with shuttered shipyards, workforce shortages exacerbated by the pandemic, and major cost overruns on military projects. Meanwhile, China has dramatically expanded its shipbuilding capacity, producing vessels at a rate hundreds of times greater than the United States, according to some estimates. This raises concerns about U.S. naval strength in the Indo-Pacific, where military analysts believe a potential conflict over Taiwan could erupt as soon as 2027.
In a recent address, Trump vowed to “resurrect the American shipbuilding industry,” lamenting the country’s diminished production capacity. “We used it to make so many ships,” he said. “We don’t make them anymore very much, but we’re going to make them very fast, very soon.” However, specific plans for the shipbuilding office remain unclear, though Trump has hinted at tax incentives to stimulate growth.
Revitalizing U.S. shipbuilding would require significant investment. According to a Congressional Budget Office analysis, the Navy would need to spend tens of billions of dollars annually for the next three decades to meet its expansion targets. The Navy had 296 battle force ships as of December but aims to increase that number to 381. This does not include unmanned assets that are expected to play a major role in future naval operations.
The decline of U.S. shipbuilding is stark when viewed historically. According to a 2023 congressional report, the U.S. built thousands of cargo ships during the World Wars. In the 1970s, American shipyards constructed about 5% of the world’s tonnage, producing 15-25 new ships annually. By the 1980s, this number had dropped to around five ships per year, a rate that remains unchanged today. Data from UN Trade and Development, compiled by Axios, illustrates the stark contrast: in 2023, the U.S. accounted for just 0.1% of global merchant ship production.
The idea of a shipbuilding office has received mixed reactions. Senate Armed Services Committee Chairman Roger Wicker, a Mississippi Republican, said the office “can only help” but admitted uncertainty about how it would function. He highlighted the dire need for increased production, pointing out that the U.S. currently builds just 1.2 attack submarines per year but requires closer to 2.7 or three to meet strategic demands. Industry leaders have expressed support for Trump’s initiative. Matthew Paxton, president of the Shipbuilders Council of America, said American companies are “ready to answer the call to design and build America’s commercial and military fleets.” Fincantieri, a major shipbuilding company, told Axios it welcomed the plan, emphasizing its potential to create hundreds of additional jobs in the short term.
Looking ahead, some lawmakers are considering alternative approaches. Republican Senators Mike Lee and John Curtis have proposed allowing warships and major components to be built in NATO countries and friendly Indo-Pacific nations like Japan and South Korea. Whether Trump’s ambitious vision for shipbuilding will translate into concrete action remains to be seen, but his push has reignited debate over America’s naval readiness and industrial capacity.
