Trump Admin Unveils Nuclear Cargo Ship Push as U.S. Commercial Fleet Falls Behind China

The Trump administration has launched a new initiative to explore the use of small modular nuclear reactors (SMRs) in commercial shipping, as part of a broader push to revive the U.S. maritime industry and reduce reliance on foreign-built vessels and conventional marine fuels.

The U.S. Department of Transportation (DOT) and the Maritime Administration (MARAD) this week issued a Request for Information (RFI) seeking industry feedback on the development of a commercially viable “system-centric” SMR concept for deployment in the marine transportation sector. The proposal could pave the way for nuclear-powered cargo ships, tankers, and other commercial vessels operating under the U.S. flag.

According to the Federal Register notice published on May 7th, the government is seeking input on reactor system architecture, liability frameworks, workforce development, port acceptance, fuel supply chains, and regulatory standards as part of efforts to support a commercially viable maritime SMR concept, including a potential ‘single vessel or technology demonstration.’

“Under President Trump’s leadership, the U.S. is reclaiming its rightful place as a global sea power,” said U.S. Transportation Secretary Sean P. Duffy. “To secure this future for America’s shipbuilding industry, we need to innovate. By partnering with industry experts and outside-the-box thinkers to develop a strong SMR model, we will deliver a state-of-the-art energy source that cuts costs and bolsters national security—all at the Speed of Trump.”

The initiative marks one of the most significant U.S. government efforts in decades to revitalize its maritime industry, and comes as Washington seeks to rebuild the U.S. commercial maritime sector amid intensifying competition with China, which dominates global shipbuilding capacity.

China operates the world’s largest commercial shipping fleet, with about 5,500 vessels and hundreds of new ships added annually, alongside its expanding navy. By comparison, the U.S. commercial fleet numbers fewer than 100 vessels and adds no more than five ships per year. Only a small share of tankers and cargo vessels transporting goods to and from the United States sail under the American flag, with some estimates placing the figure below 0.4%.1

Hence, the Trump administration has increasingly linked maritime policy to national security and industrial competitiveness. Earlier this year, the White House unveiled a ‘Maritime Action Plan (MAP)’ aimed at revitalizing U.S. shipbuilding capacity, which has declined sharply over recent decades as Asian shipyards expanded their dominance.

“Less than one percent of new commercial ships are built in the United States. With only 66 total shipyards—consisting of eight active shipbuilding yards, 11 shipyards with build positions, 22 repairs yards with drydocking, and 25 topside repairs yards—the United States does not have the capacity necessary to scale up the domestic shipbuilding industry to the rate required to meet national priorities,” noted the Trump adminstration’s MAP released on February 13th, 2026.

“Strategic competitors, meanwhile, dominate the market and build ships at a fraction of the cost of U.S. production. This status quo poses significant security and supply chain dependency issues. A self-sustaining domestic shipbuilding sector is critical for national and economic security,” the MAP further said.

“The United States can neither afford for its trade to and from foreign markets to be ferried almost entirely on foreign-built, -crewed, and -flagged ships, nor for the MIB (Maritime Industrial Base) to be unable to build and maintain the vessels the United States needs to defend American interests on the high seas. The Trump Administration seeks to reconstitute those means here,” the MAP contended.

Nuclear propulsion has long been used in military vessels such as aircraft carriers and submarines, but commercial adoption has remained limited due to high development costs, regulatory uncertainty, and public concerns surrounding nuclear safety.

However, the Trump administration contends that advances in small modular reactor technology could change that equation. SMRs are designed to be smaller, more standardized, and potentially less expensive than traditional large nuclear reactors. Their compact size and modular construction have attracted growing interest across industries seeking low-carbon, high-output energy solutions.

So, the initiative aligns with wider efforts within the shipping industry to lower emissions and curb dependence on fossil fuels, as shipping remains one of the world’s largest sources of greenhouse gas emissions, and pressure has been mounting on operators to transition toward cleaner propulsion technologies.

Also, the new nuclear shipping initiative comes amid wider federal support for advanced reactor technologies. The U.S. Department of Energy (DoE), for instance, has already launched several funding and demonstration programs intended to accelerate the deployment of next-generation SMRs and strengthen domestic nuclear fuel supply chains.

Tanmay Kadam is a geopolitical observer based in India. He has experience working as a Defense and International Affairs journalist for EurAsian Times. He can be contacted at tanmaykadam700@gmail.com.

References

  1. U.S. Republican Senator from Indiana, Todd Young, China dominates with 5,500 ships while America has under 100 — but Trump’s fighting back, Fox News, February 23rd, 2026 ↩︎