Your bike. Your couch. Your kids’ toys. Even your car — most likely, they all crossed an ocean on a ship. And chances are, that ship was made in China.
China is by far the world’s largest shipbuilding nation. They have it all: the steel, the aluminum, the parts, the components, the final assembly. China owns the infrastructure. Roughly 34% of all ships currently on water were made in China, and 57.1% of ships under construction today are at Chinese shipyards.
In 1999, China produced less than 5% of the world’s ships. By 2023, that number exceeded 50%.
It doesn’t stop at shipbuilding. China controls 95% of global shipping container production. And a single Chinese shipyard now builds more ships annually than all American shipyards combined. Think about that — and this used to be an industry dominated by the United States.
Trump’s Tariffs and the Shipbuilding Comeback Plan
Having launched a trade war with China, Donald Trump has now turned his attention to shipbuilding.
“We are going to resurrect the American shipbuilding industry,” he declared, “including commercial and military shipbuilding.”
The idea is to reset America’s trade relationship with China — and the consequences could be massive, potentially reshaping the economics and logistics of global commerce.
But what’s really driving this push? And is it even feasible?
Once an American Industry
There was a time when the U.S. ruled the seas. During World War II, the U.S. built thousands of “Liberty Ships” that kept the Allied supply chains alive. That war effort left behind an enormous shipbuilding capacity.
But in the postwar years, things changed. By the 1970s, Japan had taken the lead, followed by South Korea in the 1980s. By the 2000s, China had entered the race — and soon dominated.
Joining the WTO in 2001 supercharged China’s economy and, in turn, created massive demand for ships. Beijing’s 10th Five-Year Plan laid out a clear vision for building globally competitive ports and shipyards. With a strong industrial base and an export-focused economy, China had all the ingredients: steel, skilled labor, and scale.
The China Advantage
China’s labor force is not only massive, but also skilled, educated, and relatively cheap. That’s the workforce needed to construct sophisticated vessels. Add to that government support — subsidies, low-interest loans, equity infusions — and you get a self-reinforcing industrial machine.
Between 2010 and 2018, Beijing spent $132 billion to support its shipbuilding sector — not even counting hidden support like debt forgiveness and cheap financing from state banks.
In contrast, manufacturing now accounts for only 8% of U.S. employment. A container ship built in China costs around $55 million. A comparable U.S.-built vessel? About $330 million.
That’s why, between 2020 and 2022, China had over 4,000 large ocean-going ships on order — while the U.S. had just 12. In 2024, the U.S. produced only 0.01% of the world’s commercial ships.
Tariffs as a Weapon — But at What Cost?
Trump’s plan involves heavy tariffs on Chinese-built, owned, or operated ships. Fees would start at $1 million per docking, potentially reaching $3.5 million or more. Even U.S.-based companies with Chinese ships in their fleet could face penalties.
Industry experts have called it a “trade apocalypse” — one that could raise freight costs, drive up inflation, and shift global shipping routes away from U.S. ports.
“This will ripple through U.S. supply chains,” warned one analyst.
“Ships will skip U.S. ports, leading to increased road and rail transport instead.”
Can the U.S. Really Rebuild Its Fleet?
The Trump administration’s “America First” policy aims to revive domestic shipbuilding. But this is a monumental leap — from near-zero production to building full-scale container or cruise ships.
A smarter strategy might be to target key parts of the supply chain where U.S. manufacturers could realistically compete. And instead of going it alone, the U.S. could leverage allies like Japan and South Korea, both of which still maintain strong shipbuilding sectors.
Why Shipbuilding Matters to National Security
Beyond the economics, there’s a strategic angle. Washington sees shipbuilding as a national security issue. The U.S. military relies on a maritime infrastructure it no longer fully controls. Dependence on China for ship transport is now seen as a potential vulnerability.
This isn’t just about jobs or trade deficits — it’s about geopolitical leverage.
And within that narrative, Trump’s focus on shipbuilding might be just one piece of a much bigger puzzle — an attempt to redefine America’s global role, industrial strategy, and economic independence.
The Reality Check
Still, no one seriously expects a return to WWII-era U.S. shipbuilding dominance. China, Japan, and South Korea have built decades-long dominance into this sector. The U.S. would need not just subsidies, but sustained political will, industrial planning, and infrastructure rebuilding on a scale it hasn’t attempted in generations.
Until then, your next container ship is probably still going to say “Made in China.”