In a significant step toward restoring U.S. maritime strength, the U.S. Congress has reintroduced the SHIPS for America Act 2.0 in 2025. This renewed legislation aims to reverse decades of industrial decline and respond to China’s growing dominance in shipbuilding and global shipping logistics.

At the heart of the Act is a set of aggressive tax incentives. U.S. shipyards will now benefit from a 33% investment tax credit, with additional financial rewards for using American insurers and classification societies. These incentives are designed to revitalize domestic manufacturing and reduce dependency on foreign maritime infrastructure.

The Act also introduces harsher penalties for vessels linked to Chinese state-owned shipbuilders. Tonnage taxes and customs duties are being sharply increased. Notably, ships repaired in Chinese yards will face a 200% tariff upon entry to U.S. ports. These measures aim to create a clear economic distinction between ships aligned with U.S. allies and those linked to strategic competitors.

Furthermore, the SHIPS Act 2.0 enhances support for a national maritime workforce and promotes the use of U.S.-built vessels for government logistics. It also proposes establishing a Maritime Prosperity Zone to prioritize port investments and supply chain resilience.

As geopolitical competition intensifies in the Indo-Pacific and beyond, the SHIPS Act marks a strategic pivot—positioning America’s maritime industry not just as a tool of commerce, but as a pillar of national security.