HII shares rise on expected shipbuilding executive order

Published 09/04/2025, 16:50
© Reuters.

Investing.com -- Shares of Huntington Ingalls Industries (NYSE:HII) climbed 3.5% amid news that President Donald Trump is anticipated to sign an executive order aimed at revitalizing the U.S. shipbuilding industry and curtailing China's dominance in global shipping.

According to Reuters, the expected executive order, which could be signed as soon as Wednesday, includes measures such as imposing docking fees at U.S. ports for ships that are part of a fleet with Chinese-built or Chinese-flagged vessels. The U.S. government also plans to encourage allies to adopt similar policies or face potential retaliatory measures. These developments come as U.S. lawmakers from both major parties have expressed concerns over China's increasing control over the seas and the impact on U.S. naval capabilities.

According to a draft of the executive order reviewed by Reuters, the U.S. aims to challenge China's shipbuilding growth, which has seen its global cargo capacity share surge from 5% in 1999 to over 50% annually. This expansion has been to the detriment of shipbuilders in Japan and South Korea, while the U.S. shipbuilding industry, which peaked in the 1970s, now represents only a small fraction of global output.

The White House has not commented on the matter, and the final text of the executive order is subject to change, as noted by sources who requested anonymity due to the sensitive nature of the information.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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