Washington, Aug 14 — US President Donald Trump has opened a path for foreign companies to build ships for the US Navy as part of a sweeping effort to revive America’s shipbuilding industry, accelerate naval expansion and clear mounting construction backlogs.
A presidential memorandum signed on Thursday permits overseas suppliers to build the first two vessels in selected ship classes. They must also invest in US shipyards, transfer technology and train American workers.
According to the presidential proclamation, all subsequent vessels must be built in the United States. Foreign participants must establish a new American shipyard or acquire a controlling stake in an existing one. They must also create a US supply chain for ship construction and maintenance, a media release said.
The approach is based on the 'Finland Model', adopted in October 2025 for medium icebreakers. It can be used for up to three classes of Navy and support vessels, including surface combatants, tankers and roll-on, roll-off ships.
The memorandum said foreign sourcing was needed to bridge immediate gaps while rebuilding domestic capacity.
“The Department of War shall restore both capacity and competition to the maritime industrial base as it expands our naval force structure,” Trump said in the memorandum.
The administration blamed complex designs and repeated changes for cost overruns, delays and cancellations. It said six major Navy shipbuilding programmes had large order backlogs, while the country’s commercial shipbuilding sector was not globally competitive.
The memorandum directs the Secretary of War to submit an acquisition plan for new surface combatants within 90 days. The proposed ships must be capable of conducting anti-submarine warfare, surface warfare and convoy escort missions.
The Navy will be barred from making repeated changes to mature foreign designs selected under the programme. Any alteration will require approval from the Secretary of War, in consultation with senior Navy, White House and budget officials.
Trump also delegated authority to the Secretary of War to approve national security waivers allowing military vessels to be built in foreign shipyards. Congress must be notified, and a contract cannot be signed until 30 days after lawmakers receive the determination.
The order separately directs officials to prepare a plan within 60 days to replace electromagnetic aircraft-launch equipment and advanced weapons elevators aboard the future aircraft carrier CVN-81 with traditional steam and hydraulic systems.
It also calls for the establishment of a fifth public Navy shipyard, the first in more than 80 years. Officials have 120 days to propose possible locations near the Pacific Fleet, including Alaska, Hawaii, US territories and the continental United States.
The planned yard could include as many as three dry docks capable of servicing every current and projected submarine class. Private-sector capabilities and public-private financing arrangements may also be considered.
A new component repair centre will hold, repair and refurbish parts for the Los Angeles, Virginia, Seawolf, Ohio and Columbia submarine classes. A separate review will recommend reforms to the Naval Sea Systems Command, with an emphasis on faster deliveries, reduced bureaucracy and greater accountability.