US President Donald Trump’s January statement of his desire to procure 40 new icebreakers for the US Coast Guard has mobilized shipbuilders from countries such as Canada and Finland, which specialize in building these specialized vessels. While both countries have approached the US with different offers, a critical question emerges as to what Washington will prioritize: rapidly adding the ships to the inventory or supporting the domestic shipbuilding industry.
Finland’s “Icebreaker Diplomacy” and Promise of Fast Delivery
Finland, with its deep experience in icebreaker construction, appears eager to strike a major deal with the US. Finnish President Alexander Stubb’s comments ahead of his meeting with US President Trump in Florida last month reflected his hopes that “icebreaker diplomacy” would help Finland build good relations with the US and the Trump administration. Finland’s main offer is likely to be to respond to the urgent US need by rapidly producing the icebreakers needed at its experienced shipyards.
Local Production and Technology Transfer Offer from Canada
But Finland is not alone in this race, and is also up against a major Canadian shipbuilder specializing in building such vessels: Seaspan. David Hargreaves, the company’s senior vice president of business development, confirmed to Defense News that Finland is looking to build U.S. icebreakers in its own country, while Canada is offering a different approach. Hargreaves said that their talks with the U.S. have focused on whether U.S. shipyards could take Seaspan’s designs and use them to build their own icebreakers. The proposal has the potential to support domestic U.S. industry and address national security concerns. Hargreaves added that the concept has “gained reasonable momentum” both in Washington and at the political level, and that they have held meetings with U.S. congressmen and shipyards that could build the ships.
US Laws and the President's Exceptional Power
U.S. law requires that the vast majority of Coast Guard vessels and major components be built in American shipyards to support national industry and enhance national security. However, exceptions to this rule can be authorized by the president. Complicating the decision-making process is President Trump’s rhetoric about the rapid delivery of ships as the Coast Guard approaches retirement age, while also calling for a revival of national shipbuilding capabilities. As Hargreaves puts it, “It really depends on where America prioritizes — if they’re on schedule, then Finland is probably the right answer. If they continue to prioritize their own sovereign shipbuilding capabilities, which they have done, then Finland is not the right answer.”
Hybrid Solution and Arctic Needs
Another possible scenario is that Washington could pursue a hybrid strategy. This approach could include purchasing one or more icebreakers from Finland to quickly meet urgent needs while simultaneously pursuing a program to build the remaining ships in the U.S. Despite Trump’s talk of 40 new ships, a 2023 Coast Guard fleet analysis concluded that the service would need eight to nine polar icebreakers, four to five heavy and medium, to effectively conduct future Arctic missions. This suggests that the U.S. could buy fewer ships initially and gradually build up the capacity of domestic industry.
Canada-US Trade Relations and Trilateral Cooperation
While trade relations between Canada and the U.S. have been strained recently, Hargreaves says the shipbuilding industry has largely been unaffected by such economic headwinds. Efforts are also underway to implement the trilateral Icebreaker Cooperation Pact, which aims to bring together the Arctic expertise of Finland, Canada and the U.S. Representatives from the three countries are scheduled to meet again in May to discuss more concrete steps on icebreaker design and production, shipyard workforce development and polar research. The collaboration underscores the importance of partnerships and knowledge sharing in future icebreaker procurement processes.
Ultimately, the decision the US makes regarding icebreaker procurement will reflect the country’s strategic priorities and national interests. The competition between Finland, which offers the advantage of fast delivery and an experienced manufacturer, and Canada, which offers the opportunity to support domestic industry and transfer technology, will determine Washington’s final choice. In this process where a hybrid solution is also on the table, the US’s increasing role in the Arctic and its operational needs in this region also stand out as important factors in shaping the decision.
