Navy Admiral Caudle Confident in US Quality Amid China Shipbuilding Concerns

US Navy Admiral Daryl Caudle, Commander of the US Fleet Forces Command, joins Balance of Power during Fleet Week to talk prioritization of US shipbuilding, the rise in military recruitment and the status of US forces in the Red Sea.

A bipartisan group of US lawmakers are reintroducing legislation that aims to revive American shipbuilding, riding off momentum of an executive order from President Donald Trump announced earlier this month.

The bill would put duties on vessels owned or operated by a “country of concern” — namely China, Russia, Iran and North Korea. It would also establish a 25% tax credit for shipyard investments and create a program to boost the number of US-flagged vessels over 10 years by 250.

“Shipbuilding is a national security priority and a stopgap against foreign threats and coercion,” said Senator Todd Young, an Indiana Republican and co-sponsor of the bill. The measure, first proposed last December, “is critical to our warfighting capabilities and keeping pace with China,” Young added.

With Chinese-owned vessels dominating the maritime industry, efforts to revitalize US shipbuilding have swept across Washington in the past year. For instance, the US Trade Representative will put incremental fees on Chinese-owned vessels starting in October as a result of a Biden

Bills intended to counter China’s influence tend to be among the few bipartisan initiatives left in an increasingly divided Washington. Other lawmakers sponsoring the measure include Senator Mark Kelly, an Arizona Democrat; Representative Trent Kelly, a Mississippi Republican; and John Garamendi, a California Democrat.

National Security Advisor Mike Waltz spearheaded the issue during his time in

Congress, urging President Joe Biden to invest in maritime defense.

Trump’s shipbuilding executive order was intended to offer new funding streams to support the industry, according to a senior White House official. It also directed the Elon Musk-led Department of Government Efficiency to review past Navy shipbuilding decisions that led to problems, such as a $22 billion frigate program rattled by delays and design setbacks.

Trump has long argued that China’s dominant role in the maritime industry has made the US overly dependent, echoing the concerns of some shipbuilders. But US importers who rely on Chinese vessels to move everything from crude oil to retail goods see the docking fees as a de-facto tariff. More than 57% of ships under construction — and expected to hit the water in the next two or three years — are in China.

Trade groups, including retail organizations and agriculture exporters, have criticized proposed duties on Chinese vessels, warning that they would increase costs and hurt their bottom line.

A South Korean company, Hanwha Shipping, plans to make the first US-built liquefied natural gas tanker by the end of the decade. While no American shipyards can currently build LNG tankers, Hanwha plans to develop the capability using its acquired Philly Shipyard.

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