The United States is proceeding with its previously announced port fees for vessels built in China, including fleets containing Chinese-built ships or ships ordered from China, that call at U.S. maritime gateways in a bid to revive shipbuilding in America and counter China's dominance of the industry.
The U.S. Trade Representative (USTR) said in a notice that the fees will be imposed on all Chinese-built and -owned ships docking at U.S. ports, calculated based on net tonnage or cargo carried per voyage.
The latest announcement scales back earlier February proposals to impose fees of up to US$1.5 million per port call on China-built ships, which had triggered significant backlash from the industry.
USTR noted that these responsive actions follow a year-long Section 301 investigation, which included convening a two-day public hearing, receiving nearly 600 public comments, and consulting with experts from government agencies and USTR-cleared advisors.
"Today, USTR took targeted action to restore American shipbuilding and address China's unreasonable acts, policies, and practices to dominate the maritime, logistics, and shipbuilding sectors," it said.
The new tax, set to take effect on October 14, will impose a fee of US$50 per net ton on Chinese-built and -owned ships, with the rate increasing by US$30 annually over the next three years.
Chinese-built ships owned by non-Chinese companies will face a fee of US$18 per net ton, with annual increases of US$5 over the same three-year period.
Ocean carriers providing proof of an order for a U.S.-built vessel will have the tax suspended for up to three years.
Nonetheless, the maximum fees for large container vessels, which can carry up to 220,000 tons of cargo, remain unclear.
After three years, the USTR would also impose a restriction requiring the use of U.S. vessels for the maritime transport of a certain percentage of LNG exports. It said that an operator or its non-compliant LNG vessel may be licensed to operate for up to three years as if the requirement is met, if that operator orders and takes delivery of a U.S.-built LNG vessel of equivalent or greater capacity within that time period.
"Ships and shipping are vital to American economic security and the free flow of commerce," said USTR Ambassador Jamieson Greer. "The Trump administration's actions will begin to reverse Chinese dominance, address threats to the U.S. supply chain, and send a demand signal for U.S.-built ships."
The USTR is also seeking public comments on the proposed tariffs on ship-to-shore cranes and other cargo handling equipment, in line with President Trump's latest maritime executive order.
China, shipping industry responds
Meanwhile, following this announcement, the World Shipping Council (WSC) – the primary industry trade association representing the international liner shipping industry voiced serious concerns regarding the port fee regime announced by the USTR, cautioning that the measures could undermine American trade, hurt U.S. producers, and weaken efforts to strengthen the nation's maritime industry.
"Revitalising America's maritime sector is an important and widely shared goal – one that requires a long-term, legislative and industrial strategy. We welcomed the vision outlined in the President's Executive Order, which proposes targeted initiatives to strengthen U.S. shipbuilding, ports, and supply chain resilience. Unfortunately, the fee regime announced by USTR is a step in the wrong direction as it will raise prices for consumers, weaken U.S. trade and do little to revitalise the U.S. maritime industry," said Joe Kramek, president and CEO of the WSC.
In particular, the WSC outlined several key concerns, including retroactive port fees, fees calculated on net tonnages, fees on car carriers and legal and strategic concerns – noting that the proposed fees "appear to extend beyond the authority granted under U.S. trade law."
"Structuring fees based on ship size disproportionately penalises larger, more efficient vessels that deliver essential goods, including components used in U.S. production lines," WSC said, adding that nearly half of all liner shipping imports to the U.S. are used directly in domestic production processes.
"Additionally, the USTR actions this week included a new and previously unannounced fee based on Car Equivalent Unit (CEU) capacity for almost every vehicle carrier in the world. This arbitrary action, targeting all foreign-built vessels, will further slow U.S. economic growth and raise automobile prices for American consumers, while doing little to encourage U.S maritime investment," it added.
China also issued a strong reaction to the USTR's latest announcement.
China's commerce ministry expressed "strong dissatisfaction and firm opposition," stating, as reported by Reuters, "China will closely follow relevant developments of the US and will resolutely take necessary measures to safeguard its own rights and interests."
China's Ministry of Foreign Affairs spokesman Lin Jian criticised the imposition of port fees and tariffs on cargo equipment as "measures that harm others and the US itself."
"It not only raises global shipping costs and disrupts the stability of the global industry but also increases inflation pressures in the US, harming the interests of American consumers and businesses," Lin said. He added that the measures would "eventually fail to revitalise the US shipbuilding industry."