Can new US icebreakers help break China’s shipbuilding dominance?
China is dominating global shipbuilding, producing 75% of the world’s new commercial ships, while U.S. shipyards account for just 0.2% of global commercial tonnage. Once a maritime powerhouse, the United States has fallen dangerously behind, struggling with high production costs, outdated infrastructure and a shrinking workforce.
A new report from the Woodrow Wilson Center’s Polar Institute, titled “Getting Points on the Board: A Playbook for Near-Term Improvements to the Competitiveness of American Shipbuilding”, warns that the U.S. risks becoming entirely dependent on foreign-built vessels unless urgent action is taken. The report calls for immediate policy changes to revitalize American shipbuilding, starting with polar icebreakers as a test case for broader industry reforms.
While U.S. law requires that government ships, including Navy, Coast Guard, and Jones Act-compliant vessels, be built in the U.S., these laws have not prevented the steady decline of the U.S. shipbuilding industry. Instead, they have created a closed domestic market where American-built ships are two to four times more expensive than those produced in China, South Korea, or Japan.
“President Trump has stated publicly and repeatedly, along with his new National Security Advisor Mike Waltz, that the administration plans to resurrect America’s maritime power, specifically by revitalizing American shipbuilding,” the report notes, underscoring the growing bipartisan concern over America’s declining shipbuilding industry.
The report identifies several concrete actions the U.S. government can take to restore American competitiveness in shipbuilding, focusing on procurement reform, industrial policy, and workforce expansion.
U.S. shipbuilding reform: key policy recommendations
Implement the ICE Pact for icebreaker production
- Enshrine the ICE Pact (U.S.-Finland-Canada partnership) in an executive order.
- Appoint a dedicated ICE Pact coordinator within the Department of Homeland Security.
- Provide $25 million annually to modernize shipyards and promote U.S.-built icebreakers.
Establish a national shipbuilding strategy
- Develop a long-term plan to coordinate military and commercial shipbuilding investments.
- Take inspiration from Canada’s National Shipbuilding Strategy to improve industry stability.
Reform shipbuilding procurement and acquisition
- Modify Federal Acquisition Regulations (FAR) to allow more flexible military vessel contracts.
- Reduce excessive design changes and costly technical requirements.
- Use cost-plus contracts for prototype vessels, shifting to fixed-price contracts over time.
Strengthen trade and industrial policy
- Lead a multilateral effort to impose trade barriers on Chinese-built ships.
- Expand Buy American policies to support U.S. shipbuilding firms and suppliers.
- Pass legislation to streamline permitting for new shipyards with federal investment.
Expand the U.S. shipbuilding workforce
- Create a special visa program to attract high-skilled foreign shipbuilding engineers.
- Increase federal funding for shipbuilding apprenticeship programs.
Improve security and export control policies
- Loosen ITAR restrictions on non-sensitive vessel designs for foreign engineering expertise.
- Review classification rules to enable collaboration with trusted international shipbuilders.
Why icebreakers?
The Wilson Center argues that icebreakers are a critical starting point for reviving U.S. shipbuilding. While the U.S. has only a handful of operational icebreakers, Russia has over 40 in service, and China continues expanding its polar fleet.
Beyond military needs, global demand for icebreakers is growing, with U.S. allies projected to purchase between 70 and 90 icebreakers in the next decade. If U.S. shipyards can scale up production and compete internationally, they could break into a growing market and re-establish America’s reputation as a global shipbuilder.
The ICE Pact, a trilateral initiative with Finland and Canada, is designed to help U.S. shipyards enter this market while strengthening Arctic security. If successful, it could serve as a model for larger-scale U.S. shipbuilding reforms.
A call to action
The Wilson Center’s report presents a stark warning: Without urgent reforms, the U.S. will continue to fall further behind in shipbuilding capacity, industrial competitiveness and Arctic security.
By developing a national shipbuilding strategy, modernizing acquisition rules, and implementing stronger trade protections, the U.S. can rebuild its maritime power and compete with China’s state-backed shipbuilding dominance.
