Trump Directive Opens U.S. Naval Contracts to Foreign Shipbuilders

Hanwha Ocean Co. shares surged 5.6% following the announcement, while Fincantieri SpA saw a 3.2% rise. Under the memorandum, foreign firms can now build up to two ships abroad, specifically targeting surface combatants, cargo tankers, and roll-on/roll-off vessels. The policy seeks to resolve long-standing delivery delays and modernize the aging American fleet.

Investment stakes remain high as Hanwha pursues a $5 billion expansion of its Pennsylvania shipyard, positioning itself as a primary contender. Fincantieri maintains a established presence, having invested over $800 million into U.S. facilities during the last decade. While the policy encourages foreign capital, the Shipbuilders Council of America has raised alarms regarding the potential erosion of domestic industry competitiveness. Meanwhile, uncertainty lingers over Hanwha’s interest in acquiring Austal’s U.S. operations, as regional geopolitical frameworks like AUKUS continue to reshape international shipyard priorities.