President Trump Is Standing Up to Terrorism and Protecting International Commerce

March 15, 2025

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Action Summary

Purpose: President Trump’s directive aims to counter terrorism and safeguard international commerce by ensuring safe passage of U.S.-flagged and allied vessels through critical global shipping lanes.
Shipping Disruption: Houthi attacks since 2023 have sharply reduced commercial shipping through the Red Sea—from 25,000 to approximately 10,000 vessels annually—forcing rerouting around Africa, increasing voyage duration and fuel costs.
Economic Impact: Rerouting and heightened shipping costs have contributed to global consumer goods inflation (estimated increase of 0.6 to 0.7 percent in 2024) and disrupted trade flows for major importers and exporters, including U.S. consumer goods, automobiles, and Gulf agricultural products.
Military Engagements: U.S. naval forces have consistently intercepted missiles, drones, and other threats from Houthi forces. Notable incidents include multiple engagements by the USS Carney, USS Dwight D. Eisenhower, USS Gravely, USS Stockdale, USS O’Kane, and others that prevented significant damage to military and commercial vessels.
Timeline of Key Incidents:
- 2023: Seizure of M/V Galaxy Leader; multiple missile and drone interceptions, including on October 19 and December 30.
- 2024: Large-scale missile and drone attacks targeting U.S. and UK naval forces; successful interceptions in January, coordinated multi-ship responses in September and November; ongoing defense of merchant vessels in the Gulf of Aden through December.
International Implications: The Red Sea’s role as a primary conduit for Europe-Asia trade, with significant EU involvement, amplifies the geopolitical and economic risks posed by Houthi activities.

Risks & Considerations

The ongoing Houthi attacks on shipping routes through the Red Sea and Gulf of Aden have significantly disrupted global trade, leading to increased shipping costs and inflation. This could impact the cost of goods and services, affecting the university’s operational expenses and procurement strategies.
The rerouting of vessels around Africa due to security concerns adds substantial time and cost to shipping, which may affect the timely delivery of international supplies and equipment needed for research and academic programs at Vanderbilt University.
Increased global consumer goods inflation, as a result of higher shipping rates, could lead to budgetary constraints for the university, necessitating adjustments in financial planning and resource allocation.
The geopolitical instability in the region may influence international collaborations and partnerships, particularly those involving research and academic exchanges with institutions in Europe and Asia.
Vanderbilt University may need to consider the potential impact on its international students and faculty, particularly those from regions affected by the shipping disruptions, and provide support as needed.

Impacted Programs

Vanderbilt’s International Programs may face challenges in maintaining and expanding partnerships with institutions in Europe and Asia due to the increased costs and logistical complexities of international shipping and travel.
The Owen Graduate School of Management could see increased demand for expertise in global trade and logistics, presenting opportunities for research and curriculum development in these areas.
Vanderbilt’s Procurement and Supply Chain Management may need to develop strategies to mitigate the impact of increased shipping costs and delays on the university’s operations.
The Office of International Student and Scholar Services might need to provide additional support to international students and faculty affected by the geopolitical situation and its economic repercussions.

Financial Impact

The increased shipping costs and inflation could lead to higher operational expenses for the university, affecting budget allocations and financial planning.
Vanderbilt University may need to explore alternative supply chain strategies to minimize the impact of shipping disruptions on its procurement processes.
There could be potential opportunities for securing research funding related to global trade, logistics, and geopolitical studies, particularly through collaborations with government and international agencies.
The university’s financial aid and scholarship programs may need to be adjusted to accommodate potential increases in living costs for students due to inflationary pressures.

Relevance Score: 3 (The situation presents moderate risks involving compliance or economic impacts that require strategic adjustments.)

Key Actions

Vanderbilt’s International Trade and Economics Department should analyze the impact of increased shipping costs and delays on global trade and consumer goods inflation. This research can provide insights into economic trends and inform strategic decisions for the university’s economic programs.
The Office of Global Safety and Security should assess the risks associated with international travel and shipping routes affected by geopolitical tensions. Developing contingency plans and safety protocols for students and faculty involved in international programs is essential.
Vanderbilt’s Political Science Department should conduct research on the geopolitical implications of the Houthi attacks and their impact on international relations. This research can contribute to a deeper understanding of global security issues and inform policy recommendations.

Opportunities

The situation presents an opportunity for Vanderbilt’s Center for International Business to explore partnerships with shipping and logistics companies to study the effects of rerouted trade routes. Collaborative research could lead to innovative solutions for mitigating the economic impact of such disruptions.
Vanderbilt can leverage its expertise in international law and diplomacy to host conferences and workshops on maritime security and international trade. Engaging with policymakers and industry leaders can enhance the university’s reputation as a thought leader in these areas.

Relevance Score: 3 (Some adjustments are needed to processes or procedures due to the impact on international trade and security.)

Average Relevance Score: 2

Timeline for Implementation

N/A – No directive timeline or compliance deadline is specified in the text.

Relevance Score: 1

Impacted Government Organizations

Department of Defense (DoD): The DoD is responsible for overseeing U.S. military operations, including the strategic responses to Houthi threats affecting U.S. maritime commerce and national security.
U.S. Navy: The Navy is directly involved, as evidenced by the detailed engagements of multiple U.S. warships intercepting missile and drone attacks targeting both military and commercial vessels in key maritime routes.
Defense Intelligence Agency (DIA): The DIA provided the intelligence report highlighting the impact of Houthi attacks on shipping, influencing operational decisions and national security assessments.

Relevance Score: 2 (A limited number of agencies—three in this case—are directly impacted by the actions described.)

Responsible Officials

N/A – The text provides a narrative of events and presidential actions without explicitly assigning implementation responsibilities to specific officials or agencies.

Relevance Score: 1 (The directive does not assign responsibilities to any specific official beyond a general presidential stance.)