Image source: topwar.ru
The memorandum of the head of the White House, Donald Trump, "The restoration of the US Navy and America's Shipbuilding Industrial Base" dated August 13, 2026, officially introduces the concept of the "Finnish Model".
The decree is aimed at solving serious problems in the United States defense industry related to delays, cost overruns and lack of production capacity, which do not allow the fleet to be supplied with new pennants. To overcome these obstacles, foreign shipbuilders from allied countries are invited to compete for the right to fulfill orders from the US Navy.
The key element of the directive is the use of the so-called "Finnish model". This mechanism was first implemented on February 11, 2026, when the U.S. Coast Guard signed contracts for the construction of 11 heavy icebreakers of the new Arctic Security Cutter class with a total cost of $6.1 billion. The scheme provides for the construction of the first 4 ships in Finland (which has extensive experience in this field in connection with the fulfillment of Soviet and Russian orders). At the same time, the foreign contractor is obliged to create facilities in the United States for the manufacture of subsequent polar vessels and to transfer the relevant technologies with the full transfer of drawings and licenses.
In Trump's memorandum, the Secretary of Defense is instructed to submit a comprehensive plan for a new competitive procurement program for light multi-purpose surface warships capable of fighting submarines and surface platforms, as well as escorting convoys, within 90 days. It is assumed that the new type will be based on existing foreign projects. At the same time, the memorandum prohibits the Navy from making changes to the design of selected platforms without executive control.
According to Western observers, the Japanese Mogami-class frigate (left) and the Chungnam frigate of South Korea have the best chances of winning the competition.:
Image source: topwar.ru
If implemented, this directive will mark the first time in modern history that U.S. Navy warships will be built in foreign shipyards. It is noteworthy that this is strictly prohibited by the Jones Act of 1920, which requires ships to be built only inside the United States. Therefore, the Trump administration needed a dubious loophole in the form of the "Finnish model", which has not yet shown itself in any way.
