Former President Donald Trump is exploring a strategy that could involve foreign shipbuilders establishing operations within the United States, a move Acting Navy Secretary Hung Cao said could create approximately 540,000 American jobs and significantly expand the Navy's fleet.

Cao explained that the initiative aims to bring foreign shipbuilding capabilities to the U.S., drawing a parallel to the presence of foreign automotive manufacturers like Toyota and Nissan. "We're not building foreign ships. What we're doing is having them invest in the United States," Cao stated in an interview.

This proposal is reportedly driven by the U.S. Navy's current capacity limitations, which officials say are insufficient to meet global demands. The Navy requires approximately 350 ships, according to Cao, who noted that existing vessels, such as the USS Gerald R. Ford aircraft carrier, have experienced extended deployments due to a lack of sufficient ships for rotation.

"That's exactly why [the] president is pushing for this $1.5 trillion dollar budget so we can build the ships we need," Cao said, emphasizing the need for a robust fleet to deter adversaries in regions like the Middle East and the Indo-Pacific, where China continues its military expansion.

The strategy aims to leverage the expertise and efficiency of international shipbuilders to enhance domestic production. Cao suggested that some foreign processes might be more efficient than current U.S. methods. The initiative is part of a broader effort to address concerns about the U.S. shipbuilding industry's capacity and its vulnerability in the face of geopolitical tensions.