The U.S. Trade Representative (USTR) announced on 17 April its plan to impose fees on ships built in China and operated by Chinese companies that dock at U.S. ports, a proposal that has been softened compared to the original one, following severe pushback from the shipping industry.
According to the USTR, the actions are divided into two phases. Phase 1, which will begin after 180 days, involves the implementation of fees on Chinese vessel owners and operators based on net tonnage per U.S. voyage.
Additionally, fees will be imposed on ships built in China according to their size or container volume. To encourage the use of U.S.-built car carriers, foreign-built car carriers will also be subject to fees based on their capacity. These measures are designed to promote U.S. shipbuilding and reduce China’s market influence.
Furthermore, phase 2 will take effect three years from now and will introduce restrictions on foreign-built liquefied natural gas (LNG) vessels. These restrictions will tighten gradually over the next 22 years, with the aim of encouraging the construction of U.S.-built LNG vessels.
In addition to these phases, USTR is also seeking public comments on proposed tariffs on ship-to-shore cranes and other cargo-handling equipment, in alignment with the President’s Maritime Executive Order.
In response to industry concerns about disproportionate impacts, the USTR confirmed that certain vessel categories will be exempt from the fee.
These include:
- US-flagged vessels enrolled in designated Maritime Administration programs,
- Vessels arriving empty or in ballast,
- Smaller vessels (below 4,000 TEU),
- Vessels engaged in short sea shipping (voyages shorter than 2000nm),
- Vessels operated by U.S.-owned companies,
- And specialised export vessels.
The USTR is inviting public comment and has opened the process for a public hearing. The deadline to request an appearance at the hearing is 8 May 2025.
On 18 April, the World Shipping Council (WSC) voiced serious concerns regarding the port fee regime announced by the U.S. Trade Representative (USTR), cautioning that the measures could undermine American trade, hurt U.S. producers, and weaken efforts to strengthen the nation’s maritime industry.
The World Shipping Council outlined several key concerns:
- Retroactive Port Fees: Applying fees to vessels that are already on the water offers no support for U.S. shipbuilding and, instead, risks harming American exporters.
- Fees Calculated on NT: Structuring fees based on ship size — Net Tonnage (NT) — disproportionately penalizes larger, more efficient vessels that deliver essential goods, including components used in U.S. production lines.
- Fees on car carriers: Additionally, the USTR actions 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.
- Legal and Strategic Concerns: WSC also flagged significant legal concerns, noting that the proposed fees appear to extend beyond the authority granted under U.S. trade law.
In addition, COSCO Shipping criticized the USTR decision to impose port docking fees on Chinese-owned and operated ships on describing the action as “discriminatory” toward China’s maritime, logistics, and shipbuilding industries.
Under the original plan, COSCO would have been required to pay $3.5 million per port call and $10.5 million for three U.S. ports. However, the revised plan softens the impact by eliminating cumulative fees, with charges now based on a full U.S. voyage rather than individual port calls.
In addition, the U.S. Chamber of Commerce released a statement in which Executive Vice President and Chief Policy Officer Neil Bradley highlighted that the administration’s response to China’s unfair maritime industry practices will not revitalize the American shipbuilding industry, it will, however, impose serious new costs on American businesses and consumers.
Successfully addressing China’s increasing maritime influence, a goal we share with the administration, requires a comprehensive approach that includes Congressional action to support domestic shipbuilding as well as coordination with our allies. What won’t solve this problem is new tariffs that only increase prices for Americans.
…said Bradley.
