Trump Opens Path to Foreign-Built Navy Ships With US Production Pledge

White House Opens Path to Foreign-Built Navy Ships

President Donald Trump has directed the United States to consider building limited numbers of Navy ships in foreign shipyards, provided the builders commit to shifting subsequent production to the United States.

The National Security Presidential Memorandum expands the “Finland model” used for the Coast Guard’s Arctic Security Cutters, under which initial vessels are built in Finland, and later ships are constructed domestically. Foreign companies could build up to two ships in each of three classes at their parent shipyards before transferring follow-on work to US facilities.

Eligible classes include surface combatants capable of anti-submarine warfare, surface warfare and convoy escort; Consolidated Cargo Replenishment at Sea tankers; and roll-on, roll-off vessels.

Congressional Approval Remains Uncertain

The administration had already asked Congress to authorize four foreign-built vessels through the fiscal 2027 National Defense Authorization Act. It also requested $1.85 billion in reconciliation funding to study foreign construction and potentially purchase an initial vessel from Japan or South Korea.

Congress has proposed restrictions. The House-passed NDAA bars foreign shipyards from constructing warships or combat logistics vessels. The Senate Armed Services Committee’s version also restricts overseas warship construction but permits up to two foreign-built auxiliary ships if their builders invest in the US maritime industrial base for later production.

The White House Office of Management and Budget said the House prohibition would limit the government’s ability to use specialized foreign technology and attract investment into domestic shipyards. Senate Democrats have prevented their chamber’s bill from reaching the floor, citing concerns about defense spending and the conflict with Iran.

US law generally limits construction of armed-forces vessels in foreign yards. A national security waiver could be used, as it was for the icebreaker agreements with Finland.

Design and Systems Integration

Analysts said foreign ships would need to be designed from the outset for US weapons, survivability standards, redundancy requirements and communications systems. Retrofitting those capabilities after construction could create delays and integration problems.

Allied ships already operate with US carrier strike groups, but their connections are not always seamless. Some NATO vessels lack networks such as Cooperative Engagement Capability, which shares missile-defense targeting data. Compatible networks and datalinks could be added, but combat-system differences would be more difficult to resolve.

Spanish, South Korean and Japanese ships use versions of Aegis, though their configurations differ from those aboard US ships. Undersea-warfare systems may also be entirely different. The Navy would additionally have to incorporate foreign hull, mechanical and electrical components into its logistics network.

Testing, Maintenance and Fleet Operations

Foreign-built ships would face decisions over US post-delivery testing and certification, including shock-resistance requirements. Because overseas yards may use different technical standards, the Navy, administration, and Congress would have to determine which US requirements to retain or revise.

Similar design adaptation complicated the Constellation-class frigate program, which was based on an Italian Fincantieri design. Fincantieri Marinette Marine received the initial contract in 2020, but the Navy said in December 2025 that it would end the program after accepting the two ships already under construction following delays, cost increases and design changes.

A class limited to two or three vessels could require costly, unique training, maintenance and spare-parts systems. Analysts recommended securing critical parts in advance. Foreign designs may offer maintainability benefits, but some are built around lower operating rates than the US Navy’s 36-month cycle, under which ships can spend about half their time at sea.