Amid the hue and cry in the Washington for tariffs to be levied against China due to its trade imbalance President Trump is also targeting claimed influence in the Panama Canal and its dominance in shipbuilding and the wider maritime sector.
Katherine Tai the Ambassador at the US Trade Representative said: "Beijing's targeted dominance of these sectors undermines fair, market-oriented competition, increases economic security risks, and is the greatest barrier to revitalization of US industries, as well as the communities that rely on them.
The National Interest | 01.20.25 | From CHIPS to Ships: The Next Step in the U.S.-ROK Alliance
Proposing a work-around, Senator Todd Young (R-IN), Rep. Trent Kelly (R-MS), Senator Mark Kelly (D-AZ), and Rep. John Garamendi (D-CA) introduced the bipartisan and bicameral "Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act of 2024" (SHIPS Act) in December. The draft of the bill opens opportunities for South Korean firms. Vessels constructed in foreign shipyards can be incorporated into the U.S. strategic merchant fleet as "internal vessels" through 2029. Deregulation would free U.S. and South Korean firms to develop economies of scale and deliver ship orders on time.
The Hill | 01.14.25 | How America can rebuild its fleet to counter China's maritime dominance
China last month mounted its largest show of force around Taiwan in almost 30 years, with more than 90 naval or paramilitary vessels and dozens of aircraft operating in the air and waters around Taiwan's ports and Japan's southernmost islands. America has a shrinking set of options to respond if a demonstration like this turns into an actual blockade of Taiwan or a more aggressive form of conflict.
The Ships for America Act - introduced by Rep. Trent Kelly (R-Miss.), Rep. John Garamendi (D-Calif.), Sen. Mark Kelly (D-Ariz.) and Sen. Todd Young (R-Ind.) - would triple the number of American cargo ships trading internationally and phase in construction of those ships at American shipyards.