President Donald Trump has taken steps to rejuvenate the U.S. shipbuilding industry with an executive order signed on April 9. This initiative aims to enhance the United States’ naval capabilities while addressing the growing maritime dominance of China.
Despite existing high tariffs, the U.S. is pursuing collaborative opportunities with South Korean shipbuilders, known for their advanced technology and operational efficiency. A notable development in this partnership was Hanwha Ocean’s acquisition of Philly Shipyard, making it the first South Korean company to enter the U.S. market in this way.
Additionally, on April 7, HD Hyundai signed a Memorandum of Understanding (MOU) with Huntington Ingalls to improve shipbuilding productivity and technology, further reinforcing ties between U.S. and South Korean companies. Trump’s executive order emphasizes the critical need to revitalize the U.S. shipbuilding sector, which has languished since its World War II peak.
During the signing ceremony, the President noted the current challenges facing the industry, stating, “We used to build a ship a day, but now we can’t even build one a year.” The administration plans to invest heavily in shipbuilding to address these issues. Further reinforcing this collaboration, Hanwha Ocean has won Maintenance, Repair, and Overhaul (MRO) contracts for two U.S. Navy ships and is involved in constructing the National Security Multi-Mission Vessel.
Legislative efforts are also underway, with Congress proposing acts to increase the number of U.S.-flagged merchant ships and allow allies like South Korea to build naval vessels in their shipyards. The partnerships between South Korean firms and U.S. entities reflect a shared commitment to countering China’s maritime influence.
Initiatives like the recent MRO agreement between HD Hyundai and the U.S. Navy highlight the growing strategic alliance, complemented by educational collaborations aimed at developing talent in the shipbuilding industry.