The Trump administration is advancing a dual strategy focused on nuclear-powered maritime logistics and domestic steel manufacturing to reduce reliance on Chinese supply chains. Commerce Secretary Howard Lutnick and Transportation Secretary Sean Duffy highlighted these initiatives on August 28, 2026.

Nuclear-Powered Vessel Initiative

Transportation Secretary Sean Duffy announced that the Department of Transportation is fast-tracking the construction of a new fleet of nuclear-powered cargo vessels. The first vessel is scheduled for construction in 2028. Duffy stated these ships would operate for 20 years without refueling and offer crossings up to 75% faster than conventional vessels. The design eliminates internal fuel tanks, allowing for increased cargo capacity.

The U.S. Maritime Administration (MARAD) is seeking industry input on incorporating small modular reactors (SMRs) into commercial shipping fleets. This push comes as China State Shipbuilding Corporation (CSSC) holds more than 30% of global shipbuilding orders, according to a 2024 South China Morning Post report.

Domestic Steel Manufacturing Push

Commerce Secretary Howard Lutnick visited Lehigh Heavy Forge in Bethlehem, Pennsylvania, to highlight domestic metal production capabilities. He noted that American workers are manufacturing large steel components for submarines, naval ships, and the nuclear industry. Lutnick described this output as evidence of the strength of American manufacturing.

Trade Context

These announcements follow the collapse of U.S.-Canada trade talks over disagreements regarding tariffs and market access for medium- and heavy-duty trucks. Lutnick blamed Canadian Prime Minister Mark Carney for the breakdown, accusing him of prioritizing political ambitions. U.S. Trade Representative Jamieson Greer clarified that discussions on pickup trucks were separate from Section 232 tariffs on automobiles.

US Treasury Secretary Scott Bessent has called on G20 nations to reassess their trade deals with China. He cited the country's $1.2 trillion trade surplus as an unsustainable global imbalance that requires immediate attention.

Bessent made these comments on Sunday, ahead of the G20 finance leaders' meeting in Asheville, North Carolina, starting Monday. He emphasized the need for Beijing to transition its economy from an export-focused model to one driven by domestic consumption.

Global Imbalances and US Policy

Despite describing the direct trade position between the US and China as "rapidly improving," Bessent highlighted the broader risks of China's export boom. "The world cannot have a China with a $1.2 trillion trade surplus," he stated.

The appeal for a unified trade response coincides with legal setbacks facing US tariff policies. While these tariffs significantly reduced imports from China into the US, they led to an increase in Chinese imports in other regions, notably Europe and Latin America. Bessent noted that he had cautioned other industrial economies about this pressure last year, adding that they now face "very stark choices."

G20 Meeting and Trade Reset

The G20 finance ministers and central bank governors are expected to discuss reducing trade imbalances, enhancing growth, and cutting business ties with Iran. The meeting tests the bloc's ability to find common ground on trade, energy, and conflict.

Meanwhile, Chinese Foreign Minister Wang Yi urged Washington and Beijing to "overcome obstacles" and maintain high-level exchanges. This comes ahead of a planned summit between President Donald Trump and President Xi Jinping in September.

Tariff Dynamics and Future Outlook

Trump is considering an additional 7.5% tariff on Chinese goods due to concerns over industrial overcapacity. This adds tension ahead of Xi's visit. However, US and Chinese officials plan to discuss cutting tariffs on non-strategic goods and establishing AI guardrails to prevent powerful models from reaching non-state actors.

Bessent estimated that up to $30 billion in goods on each side could see tariffs removed. Data from the US Census Bureau shows that Trump's existing tariffs helped cut the trade deficit with China by one-third to $73.9 billion in the first half of 2026. Early-2025 imports were boosted as businesses rushed to beat expected tariffs.