US Proposes Port Fees on Chinese-Built Ships to Counter Trade Imbalances
- On February 25th, 2025, the Trump administration, via the USTR, proposed new port fees targeting vessels owned by Chinese companies or manufactured in Chinese shipyards, potentially altering global trade economics.
- This proposal stems from a USTR investigation, initiated during President Biden's administration and announced last month, into allegations by U.S. Labor unions that China unfairly distorts the international shipbuilding industry by subsidizing its domestic shipbuilding sector to dominate the global market.
- The policy, conducted under Section 301 of the Trade Act of 1974, could charge Chinese-owned cargo ships $1 million or more per port-of-call in the U.S., and $1.5 million for ships built in China but operated by non-Chinese entities, with adjustments based on the percentage of Chinese-built ships in a fleet, potentially impacting U.S. Commerce, maritime logistics, and supply chain resilience.
- Criticism arose from Chinese Foreign Ministry spokesperson Lin Jian, CANSI, and the China Shipowner Association, who described the USTR investigation as containing "conclusions full of lies and distortion of facts," while CANSI insisted that China's shipbuilding industry follows international trading rules, results from collaboration, tech innovation, and hard work.
- Experts like Mary Lovely and Joe Kramek express concerns that the fees lack economic justification, may harm U.S. Supply chains, increase costs for consumers, and benefit other shipbuilding nations like Japan, Korea and the Philippines, while Marc Levinson suggests the policy won't significantly aid U.S. Shipbuilders, and the NRF strongly opposes the port fee remedy.
59 Articles
59 Articles
Trump administration proposes steep fees on Chinese cargo ships
The Trump administration has proposed punitive new fees on international shipping that would target vessels owned by Chinese companies or manufactured in Chinese shipyards, promising to dramatically alter the economics of global trade. The new policy would charge Chinese-owned cargo ships, as well as third-country flagged vessels built in China, $1 million or more per port-of-call in the U.S. Large container ships often make multiple stops when …
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