Rep. John Garamendi and Sen. Mark Kelly have highlighted the urgent need for the United States to rebuild its shipbuilding industry, citing growing international competition, particularly from China, as a threat to both national security and the economy [1]. The lawmakers note that while the U.S. was once a dominant maritime power, the nation's shipbuilding capacity has significantly declined in the 21st century, resulting in the closure of shipyards and loss of good-paying jobs [1].
China now leads the world in shipbuilding, constructing over 1,000 vessels annually and possessing the largest commercial fleet globally. In 2024, the U.S. built only five merchant vessels compared to China's 1,400, and China has three times as many naval warships as the United States [1]. This disparity has serious implications: the authors warn that in a conflict, China could restrict its ships from U.S. ports, causing supply chain disruptions and price increases. They reference an incident on April 3, 2025, when China restricted rare earth exports to the U.S., impacting production of goods from smartphones to fighter jets, demonstrating China's leverage over global trade [1].
To address these challenges, President Donald Trump introduced the Maritime Action Plan in February, aiming to provide stable funding for U.S.-built ships, shipyards, and mariners, and to reduce regulatory barriers [1]. In support of this initiative, Garamendi and Kelly, along with Sen. Todd Young and Rep. Trent Kelly, introduced the SHIPS for America Act. This legislation sets a national goal to expand the U.S.-flagged international fleet by 250 ships over 10 years and to upgrade and expand private shipyards for commercial shipbuilding and repair [1].
The lawmakers argue that revitalizing the U.S. maritime sector is essential for maintaining economic and military leadership. They emphasize bipartisan support for the SHIPS for America Act, describing it as the most ambitious maritime legislation in a generation [1].
CONCLUSION
The SHIPS for America Act represents a bipartisan effort to counter China's dominance in global shipbuilding and strengthen U.S. economic and national security. If enacted, the legislation could revitalize American shipyards, create jobs, and reduce reliance on foreign shipping. Market participants should monitor legislative progress and potential impacts on the U.S. maritime industry.