Trump boosts US shipbuilding industry, French shipping giant invests $20 billion

On Thursday, President Trump announced that the French shipping company CMA CGM will invest $20 billion in the United States to build maritime logistics facilities and enhance the handling capacity of American docks.

The Trump administration aims to revitalize the U.S. shipbuilding industry and weaken China’s dominance in global shipping. To that end, Trump announced during his congressional address on March 5 that he will establish the “Office of Shipbuilding” within the White House, dedicated to promoting domestic ship construction.

On Thursday, CMA CGM CEO Rodolphe Saade met with Trump in the Oval Office to confirm the $20 billion investment plan. Saade emphasized that the plan will create 10,000 job opportunities.

According to CMA CGM’s statement, the four-year $20 billion investment plan will include expanding container terminals, enhancing the handling capacity of U.S. ports, and establishing an air freight hub in Chicago. The hub will be operated by five new Boeing 777 freighters piloted by American aviators.

Saade, a French-Lebanese billionaire, leads CMA CGM along with family members. Currently, the shipping company operates port terminals in New York and Los Angeles, and serves as a major carrier for U.S. retail giant Walmart.

He informed Trump that the company is considering supporting a domestic shipbuilding project in the U.S. and will officially announce details in the “coming weeks.”

Additionally, CMA CGM plans to increase the number of vessels flying the American flag from 10 to 30 – aligning with the strategic goal of enhancing U.S. maritime autonomy set by the Trump administration.

In recent years, China has aggressively expanded its shipbuilding capabilities and sought to extend its influence in international logistics. This has raised significant concerns in the U.S. Many security analysts believe that in the event of a military conflict, China’s commercial fleet would serve as a crucial supply force, transporting oil, food, and industrial goods for the Chinese military.

In response, the Trump administration has prioritized maritime strategy in its policy agenda. Trump stated on Thursday that he will announce a new U.S. shipbuilding program in the coming weeks, which includes providing incentives.

According to a recent report by The Wall Street Journal, the Trump administration plans to offer tax incentives for the shipbuilding industry, potentially including reduced corporate income tax rates and investment tax credits to encourage companies to build commercial and military vessels in the U.S.

According to a draft executive order obtained by Reuters on Thursday, the Trump administration also plans to levy charges on fleets using Chinese-made ships and urge allies to follow suit.

In the future, any fleet containing Chinese-made or Chinese-flagged vessels docking at U.S. ports will be required to pay additional fees. The Trump administration also plans to request allied nations to implement similar measures.

CMA CGM is the world’s third-largest container shipping company. Last week, the company stated that the U.S. imposition of port fees on Chinese-made vessels will have a significant impact on all shipping companies.