The Trump administration is considering new tariffs aimed at the container shipping industry, proposing steep port usage fees on Chinese-built and Chinese-operated vessels calling at U.S. ports. Additionally, U.S. exporters may face rising costs under a separate proposal requiring an increasing share of exports to be transported on American ships.

If enacted, these measures could significantly raise shipping costs for U.S. businesses and disrupt global container trade dynamics.

The proposed port usage fee is designed to penalize China’s ocean carriers but would also impact the wider maritime industry that depends on Chinese-built ships.

A year-long investigation by the U.S. Trade Representative (USTR) found that China’s aggressive state support propelled its global shipbuilding market share from under 5% in 1999 to over 50% by 2023. Chinese companies now own about 20% of the world’s shipping fleet, the USTR reported.

“China has largely achieved its dominance goals, severely disadvantaging U.S. companies, workers, and the U.S. economy,” the USTR stated.

The USTR, soon to be led by Trump appointee Jamieson Greer, has outlined several penalties and potential remedies, now open for public comment until March 24.

Key proposals include:

  • A $1 million fee for each U.S. port call by a Chinese-operated ship.
  • A $1,000-per-net-ton fee based on a ship’s carrying capacity.
  • A sliding port entrance fee of up to $1.5 million per Chinese-built vessel, applied to all ocean carriers based on the percentage of their fleet constructed in China.
  • An additional $1 million per vessel fee based on the percentage of a carrier’s newbuild orders placed with Chinese shipyards.
  • A $1 million refund per call for vessels built in the U.S., encouraging carriers to invest in American-made ships.

Beyond tariffs, the USTR has also proposed cargo preference rules, requiring U.S. exports to be increasingly transported on American ships:

  • Year 1-2: At least 1% of U.S. exports must be carried on U.S.-flagged vessels.
  • Year 3 and beyond: An increasing percentage of exports must move on ships that are both U.S.-built and U.S.-flagged.

Public hearings on the proposed actions will follow the comment period, and if implemented, the measures could take effect within six months.

Affected shipping companies may request waivers, and the proposals could be delayed through trade negotiations. However, if enforced, these measures would impact every major container shipping company operating outside of the U.S. and could reshape global supply chains.

Source: www.joc.com