According to a senior Japanese shipping official, Japan and South Korea, as allies of the United States, would have difficulties in quickly increasing shipbuilding to meet the U.S. requirements for alternatives if President Donald Trump decides to impose port fees on China-linked vessels. The Trump administration is planning to issue an executive order to boost domestic shipbuilding and reduce China's dominance in the industry.

The top executive of Nippon Yusen (NYK), Japan's largest shipping company, Takaya Soga, mentioned that Japanese shipyards are currently operating at maximum capacity until around 2028, making it challenging for them to expand. Similarly, South Korean shipbuilders are not in a position to expand soon as they have been facing financial difficulties for nearly two decades.

Soga highlighted that U.S. shipbuilders will need investments and technology to enhance their capacity. Trump's order aims to set up a Maritime Security Trust Fund for funding and introduce incentives for shipbuilding through measures like tax credits, grants, and loans as per a draft fact sheet.

The Center for Strategic and International Studies reports that China, Japan, and South Korea collectively contribute to 90% of global shipbuilding, with China's market share of merchant vessel cargo capacity increasing significantly over the years.