Trump Strikes Back
The Trump administration introduced new rules to protect U.S. exporters and ship owners in the Great Lakes, Caribbean, and U.S. territories from high port fees on ships built in China. The goal is to boost U.S. shipbuilding and counter China’s dominance in the global shipping industry.
Originally, a February plan proposed fees of up to $1.5 million per port visit for Chinese-built ships, which worried the shipping industry. Those fees could have raised costs for U.S. exports and added $30 billion in import costs for American consumers. The new rules, published by the U.S. Trade Representative (USTR), are less harsh.
The updated plan exempts certain U.S.-based companies, like Matson and Seaboard Marine, and ships arriving empty to pick up exports like wheat or soybeans. Fees will start in 180 days and apply only once per trip, up to six times a year. Instead of a flat fee, charges will be based on a ship’s weight (net tonnage) or the number of containers unloaded.
For Chinese-built and owned ships, the fee starts at $50 per net ton, increasing by $30 each year for three years. Alternatively, they’ll pay $120 per container unloaded, rising to $250 after three years. Non-Chinese companies with Chinese-built ships will pay a lower rate, starting at $18 per net ton with smaller yearly increases.
These changes aim to ease concerns from the global shipping industry while encouraging U.S. shipbuilding, which produces only about five ships a year compared to China’s 1,700. The fees add to trade tensions between the U.S. and China, as Trump pushes for talks on new tariffs of 145% on Chinese goods.
The USTR also plans a May 19 hearing to discuss 100% tariffs on Chinese-made port cranes and container parts. It’s unclear if the money from these fees and tariffs will directly fund U.S. shipbuilding. The rules follow a year-long investigation into China’s maritime practices, started under President Biden, showing both parties agree on strengthening U.S. shipbuilding and naval readiness.
Highlights:
Trump administration softened proposed fees on Chinese-built ships after industry pushback.
Domestic exporters and U.S.-based shipowners (e.g. Matson, Seaboard Marine) are exempt from the fees.
Original fee proposal: Up to $1.5 million per port call, causing concern in the shipping industry.
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