The United States has announced a new round of economic measures targeting Chinese maritime dominance by introducing port fees on Chinese ships, in an effort to revive the American shipbuilding industry and reduce dependency on Chinese-built vessels.
Beginning in mid-October, the U.S. will impose a $50-per-ton cargo fee on ships owned or operated by Chinese entities. These charges will rise by $30 per ton annually over the next three years. Additional charges will apply based on vessel type, with container ships incurring fees of $120 per container and non-U.S.-built vehicle carriers paying $150 per car. Affected vessels will be charged a maximum of five times annually.
The decision, issued by the U.S. Trade Representative (USTR), comes amid increasing global trade disruptions triggered by President Donald Trump’s sweeping tariff policies. While earlier proposals had suggested port fees as high as $1.5 million per Chinese vessel visit, the final structure is considerably more moderate, yet still significant.
“China has largely achieved its dominance goals, severely disadvantaging U.S. companies, workers, and the U.S. economy,” the USTR said in a statement. The new rules will exempt empty vessels, ships transporting goods between U.S. ports or to nearby territories, and vessels from U.S. and Canadian operators serving the Great Lakes.
The announcement follows a Section 301 investigation into China’s shipbuilding practices, amid mounting concerns over Beijing’s control of global ship production. China currently accounts for over 80% of global shipbuilding output, raising alarms in Washington about long-term economic and national security vulnerabilities.
China’s Ministry of Foreign Affairs criticized the move, claiming the new fees would raise costs for American consumers without successfully reviving domestic shipbuilding. “This will not revitalise the U.S. shipbuilding industry,” a spokesperson said.
A second phase of the plan, set to begin in 2028, will impose further restrictions favoring U.S.-built liquefied natural gas (LNG) carriers. These measures will ramp up over the next two decades.
The U.S. decision comes amid already strained global supply chains. Industry leaders say Trump’s trade tariffs—some reaching 145% on Chinese imports and up to 245% when combined with existing levies—have forced shipping companies to reroute cargo. As a result, ports in the UK and the European Union are facing congestion, with imports from China rising 15% into the UK and 12% into the EU in the first quarter of 2025.
Marco Forgione, Director General of the Chartered Institute of Export & International Trade, said the rerouting of cargo from China to Europe has led to significant shipping bottlenecks. “We’ve seen a lot of diversion of ships from China, that were due to head to the U.S., now coming to the UK and into the EU,” he said.
Experts warn that American consumers will ultimately bear the brunt of higher prices, while European markets may remain relatively insulated from the direct impact of the new tariffs.
