USTR Moves Ahead on Port Fees on China
OMAHA (DTN) -- Despite concerns from export-dependent industries such as agriculture, the Trump administration on Thursday moved ahead with a plan to charge fees to Chinese ships.
The fees will apply to Chinese ships for each voyage to the United States, not for each port of call.
The U.S. Trade Representative's Office concluded Thursday that the fees were needed because China had targeted the maritime industry, harming U.S. ship manufacturing and U.S.-based maritime companies.
China controls nearly one-fifth of the world's shipping containers, USTR noted, and the country has expanded its control over global ship manufacturing and logistics.
Initially, USTR had proposed a $1.5 million flat fee for every port of call for Chinese ships. The new plan released Thursday doesn't specify what the maximum fee would be on a ship, just the per-ton fees.
The fees come as the Trump administration has already set tariffs on imported Chinese goods at 145%, and the president has proposed going to 245%.
Farm groups had called on USTR to exempt the industry from the fees. USTR noted in its order that agriculture and other industries had requested exemptions in their comments to the agency. However, the order did not indicate any exemptions would be granted.
After a 180-day no-fee timeframe, ships based out of China will be charged up to $50 per ton starting Oct. 24, 2025. The tonnage fee would then increase $30 a ton on April 17, 2026, and increase $30 a ton the next two years, reaching $140 a ton.
Companies not based in China but using Chinese-built ships will be charged $18 per ton, or $120 per container, whichever is higher.
Typically, container ships arriving at West Coast ports will hold anywhere from 12,000 to 24,000 containers. Container ships generally hold 100,000 to 200,000 tons. Ports such as Long Beach, California, for instance, will move about 9 million tons of goods a year, of which roughly half are imports.
A ship can be charged the port tonnage fee up to five times per year, the order stated.
Also, to incentivize U.S.-built car carrier vessels, ships bringing in foreign-built cars will face fees based on their capacity.
The U.S. Trade Representative stated it had taken action to restore American shipbuilding and address China's "unreasonable acts, policies, and practices to dominate the maritime, logistics, and shipbuilding sectors." The announcement came after USTR convened a two-day public hearing, receiving nearly 600 public comments, and consulting with government agency experts and USTR cleared advisers, USTR stated.
"Ships and shipping are vital to American economic security and the free flow of commerce," said 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."
Along with the fees on ships at port, there will also be restrictions on transporting U.S. liquefied natural gas. Those fees are meant to incentivize the construction of U.S.-built liquefied natural gas ships.
In addition, USTR is seeking public comments on the proposed tariffs on ship-to-shore cranes and other cargo handling equipment, in line with the President's Maritime Executive Order, USTR stated.
The USTR investigation actually began more than a year ago under the Biden administration. On March 12, 2024, five national labor unions filed a petition requesting an investigation into the acts, policies, and practices of China targeting the maritime, logistics, and shipbuilding sectors for dominance.
USTR determined that China targeted the maritime, logistics, and shipbuilding sectors for dominance, putting unreasonable burdens or restrictions on U.S. commerce, prompting actions under Sections 301(b) and 304(a) of the Trade Act. Specifically, USTR found China's targeting for dominance unreasonable because it displaces foreign firms, deprives market-oriented businesses and their workers of commercial opportunities, and lessens competition and creates dependencies on China, increasing risk and reducing supply chain resilience. China's targeting for dominance is also unreasonable because of Beijing's extraordinary control over its economic actors and these sectors.
Groups such as the National Grain and Feed Association urged its members to call Congress, USDA, USTR and the White House to urge USTR not to impose the port fee.
During a Senate Finance Committee hearing earlier this month, Greer had pointed out that the U.S. built just three large ships last year, compared to building thousands during World War II.
Greer also said President Donald Trump was looking for ways to incentivize shipbuilding in the U.S. "without impacting our commodity exports."
Also see "Farmer Testifies at USTR Hearing That Proposed Fees Will Harm US Farmers" here: https://www.dtnpf.com/….
Chris Clayton can be reached at Chris.Clayton@dtn.com
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