President Trump and members of Congress want to revive U.S. shipbuilding with subsidies and penalties against Chinese-built ships. But there are obstacles.
President Trump and some members of Congress want to revive a depleted American shipbuilding industry to compete with China, the world’s biggest maker of ships by far.
It is such a daunting goal that some shipping experts say it is destined to fail. More hopeful analysts and industry executives say the Trump administration and Congress could succeed but only if they are willing to spend billions of dollars over many years.
One of the places where Washington’s maritime dreams might take shape or fall apart is a shipyard on the southern edge of Philadelphia that was bought last year by one of the world’s largest shipbuilding companies, a South Korean conglomerate known as Hanwha.
“The shipbuilding industry in America is ready to step up,” David Kim, the chief executive of Hanwha Philly Shipyard, said in an interview.
But to do that, he said, the yard must have a steady stream of orders for new vessels. And the federal government will need policies that subsidize American-built ships and penalize the use of foreign vessels by shipping companies that call on U.S. ports.
Last month, Mr. Trump issued an executive order aimed at revitalizing American shipbuilding. “We’re going to be spending a lot of money on shipbuilding,” he said when announcing the order. “We’re way, way, way behind.”