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International arbitration report
In this edition, we focused on the Shanghai International Economic and Trade Arbitration Commission’s (SHIAC) new arbitration rules, which take effect January 1, 2024.
Landmark executive order: Restoring America’s maritime dominance
United States | Publication | abril 2025
On April 9, 2025, the White House released the executive order “Restoring America’s Maritime Dominance” (the Order). The Order aims to:
- Align federal agencies to streamline regulation and revitalize the US maritime industry;
- Create funding programs and investment zones to grow shipbuilding and port infrastructure;
- Expand maritime workforce training and education and
- Engage allies to align trade policies and attract foreign investment to the US maritime sector.
The Order calls for the creation of a Maritime Action Plan (MAP) which would steer combined agency action on, and federal investments in, US shipbuilding, port infrastructure and workforce development. The Order also proposes new trade and international policy actions, regulatory reforms and financial incentives in an attempt to boost domestic shipbuilding, expand the US-flagged fleet, and secure US supply chains.
The Order comes in the wake of a series of legislative and executive actions aimed at bolstering the US marine shipping industry. Such executive actions include proposed actions of Office of the United States Trade Representative (USTR) directed at promoting US shipbuilding and disincentivizing the use of foreign-built, specifically Chinese, vessels. Alongside this, legislative initiatives like the SHIPS for America Act have been proposed to revitalize the US shipbuilding industry.
Maritime action plan
The anchor of the Order is the introduction and development of the Maritime Action Plan (MAP). As outlined in the Order, the MAP will set forth the strategy to “restore and create sustained resiliency for the American maritime industry.”i The MAP will include reports on various topics, as outlined below, prepared by the agencies identified in the Order, which currently have differing degrees of regulatory oversight of the US commercial shipping industry.
The MAP must be submitted to the President within 210 days of the issuance of the Order by the Assistant to the President for National Security Affairs (APNSA) and the Director of the Office of Management (OMB), in coordination with the Secretary of State, the Department of Defense (DOD), the Department of Commerce (DOC), the Department of Labor (DOL), the US Department of Transportation (USDOT), the Department of Homeland Security (DHS), USTR and the heads of any additional executive departments and agencies the APNSA deems appropriate.
Maritime industrial base, shipbuilding, port infrastructure and mariner training
The Order instructs the DOD, in coordination with the DOC, USDOT and DHS, to determine the authorities and resources available for investment in the expansion of the US maritime industrial base, including shipbuilding and port infrastructure, through both private capital as well as public funding, such as may be available from the Defense Production Act Title III. The Order calls for the preparation of a “Report on Maritime Industry Needs” and a separate report on marine labor matters, which would address government opportunities to support the US maritime industry and workforce, respectively. Separately, the Order instructs the USDOT to oversee the “modernization” of the US Merchant Marine Academy by investing in the revitalization of the campus and establishment of a five-year capital improvement plan.
Trade and international matters
In connection with USTR’s ongoing investigation concerning proposed action under Section 301 of the Trade Act of 1974 (Section 301) related to China’s acts, policies and practices targeting the maritime, logistics and shipbuilding sectors for dominance, the Order instructs the USTR to, among other things, consider tariffs on Chinese-built cargo handling equipment, including ship-to-shore cranes. Such equipment is defined broadly to include any such equipment “manufactured, assembled or made using components of PRC origin, or manufactured anywhere in the world by a company owned, controlled or substantially influenced by a PRC national.”
The Order calls for increased scrutiny on the import of products from Mexico and Canada “in order to prevent cargo carriers from circumventing the Harbor Maintenance Fee (HMF) on imported goods through the practice of making port in Canada or Mexico and sending their cargo into the US through land borders.” Specifically, the Order instructs the DHS to require:
- all foreign-origin cargo arriving by vessel clear the Customs and Border Protection (CBP) entry process at a US port of entry and
- any foreign-origin cargo first arriving by vessel in Canada or Mexico then clearing the CBP process at an inland location be assessed applicable customs, duties, taxes, fees (including the HMF), interest, and other charges plus a 10 percent service fee for additional costs to the CBP.
At the same time, the Order instructs the Secretary of State and DOC to engage with “treaty allies, partners and other like-minded countries around the world” to follow-suit in the imposition of the above programs concerning PRC origin ships and equipment as well as prevent the circumvention of US cargo fees by foreign-origin cargo landed in Mexico or Canada. Similarly, the Order instructs APNSA and OMB to recommend means to incentivize shipbuilders “domiciled in allied nations” to “undertake capital investment in the US to help strengthen the shipbuilding capacity of the US.”
The Order further instructs the DOD, in consultation with the USDOT, DHS, and the Coast Guard, to develop a strategy to “secure arctic waterways and enable American prosperity in the face of evolving artic security challenges” to be included in the MAP. Separately, the Order also directs the DOD to conduct a review and issue guidance on the “funding, retention, support and mobilization of a robust inactive reserve fleet.”
Regulatory reforms
Alongside the regulatory reforms discussed above, the Order calls for general reforms to US marine procurement policies and related improvements to “government efficiency.” The Order requires a report be prepared by the DOD, DOC, USDOT and DHS with recommendations specific to increasing US shipbuilding. Further to this, the Order instructs for the same agencies, with the exception of the DOC, to identify opportunities for deregulation within their agencies, with a report on such to be included in the MAP.
Financial incentives
The Order proposes several financial incentives and funding stability measures to promote the ongoing development of the US shipping industry. These include a legislative proposal to create a Maritime Security Trust Fund, to serve as a reliable source of MAP funding; a Shipbuilding Financial Incentives Program, to offer flexible grants and loans which may replace the Small Shipyard Grant Program and Federal Ship Financing (Title XI) Program and the establishment of Maritime Prosperity Zones, to incentivize “domestic and allied” investment in maritime industries and waterfront communities, including river and Great Lakes communities.
Practical impact
The Order jumpstarts long-term efforts to revitalize the US commercial maritime industry, including through shipbuilding and workforce development. It lays a groundwork for increased investment, streamlined regulation and new incentives for US shipbuilding – especially for Jones Act-compliant vessels. Though the full ramifications of the order will take time and are yet to be realized, stakeholders can expect more US-built ships and flagged vessels to come online in the coming years, with the potential to significantly bolster the US shipping industry.
Key dates and deadline
| Action item | Deadline | Date |
| Submission of Maritime Action Plan (MAP) | 210 days after the date of the Order | No later than November 5, 2025 |
| Assessment on ensuring the security and resilience of the maritime industrial base | 180 days after the date of the Order | No later than October 6, 2025 |
| Engagement allies and partners to align trade policies | 90 days after the date of the Order | No later than July 8, 2025 |
| Identification of means to reduce dependence on adversaries through allies and partners | 90 days after the date of the Order | No later than July 8, 2025 |
| Plan to establish maritime prosperity zones | 90 days after the date of the Order | No later than July 8, 2025 |
| Report on maritime industry needs | 90 days after the date of the Order | No later than July 8, 2025 |
| Report to address how to expand mariner training and education | 90 days after the date of the Order | No later than July 8, 2025 |
| Beginning of the modernization of the US Merchant Marine Academy | 30 days after the date of the Order | No later than May 9, 2025 |
| Development of five-year capital improvement plan (CIP) for US Merchant Marine Academy | 90 days after the date of the Order | No later than July 8, 2025 |
| Proposal to improve procurement efficiency | 90 days after the date of the Order | No later than July 8, 2025 |
| Proposal to improve government efficiency | 90 days after the date of the Order | No later than July 8, 2025 |
| Legislative proposal to increase the fleet of commercial vessels trading internationally under the flag of the US | 180 days after the date of the Order | No later than October 6, 2025 |
| Strategy to ensure the security and leadership of arctic waterways | 90 days after the date of the Order | No later than July 8, 2025 |
| Review on shipbuilding | 45 days after the date of the Order | No later than May 24, 2025 |
| Identification of deregulatory initiatives | 30 days after the date of the Order | No later than May 9, 2025 |
| Review and guidance on inactive reserve fleet | 90 days after the date of the Order | No later than July 8, 2025 |
i Fact Sheet: President Donald J. Trump Restores America’s Maritime Dominance, April 9, 2025.
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