Trump lets foreign shipyards build US Navy warships, opening door for India

President Donald Trump has signed a National Security Presidential Memorandum allowing foreign shipyards to build US Navy warships for the first time since a 1968 law (10 US Code 8679) banned the practice. The waiver mechanism lets a foreign shipbuilder construct up to two vessels each across three ship classes at its own yard, on condition it builds a new shipyard in the US or takes majority control of an existing one, licenses its technology, hires American workers, and sources a US supply chain. The Secretary of War will make the national security determination for each waiver, reports the Times of India.

Indian shipyards Larsen & Toubro, Mazagon Dock Shipbuilders, and Cochin Shipyard already hold Master Ship Repair Agreements (MSRAs) with the US, but these cover only Military Sealift Command support vessels, not commissioned Navy combatants. The new memorandum does not change that distinction directly, though Indian yards with MSRA status could be considered for construction work under the new framework. The memo also directs the Secretary of War to submit within 120 days a plan to boost nuclear submarine and aircraft carrier readiness, including using private shipyards and a proposed fifth public navy shipyard.