In a move signaling deeper trade tensions with Beijing, the Trump administration has announced new fees on Chinese-built and Chinese-owned vessels docking at U.S. ports. The policy, unveiled Thursday by the Office of the United States Trade Representative (USTR), is aimed at curbing China’s dominance in global shipbuilding and strengthening U.S. supply chain resilience.
According to USTR, the new measures are the result of a year-long investigation launched under the Biden administration in April 2024. The investigation was carried out under Section 301 of the 1974 Trade Act and proposed hefty service fees—up to $1 million per Chinese-built vessel and $1.5 million for foreign-owned carriers operating Chinese-built ships.
“Ships and shipping are vital to American economic security and the free flow of commerce,” said U.S. Trade Representative Ambassador 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.”
The newly announced fees will be calculated based on the net tonnage of vessels entering U.S. ports. The first phase of implementation will begin in 180 days, affecting Chinese-built and Chinese-owned vessels. A second phase, set for 2028, will extend to foreign-built liquefied natural gas (LNG) ships.
The action comes amid China’s increasing grip on global maritime manufacturing. In 2024, Chinese shipyards produced 81% of all vessels worldwide, according to data from Veson Nautical. China also commands nearly half of the liquefied petroleum gas (LPG) vessel market and 38% of the LNG sector.
The USTR said the decision to impose fees was driven by national security and economic concerns, following a petition from five major U.S. labor unions filed in March 2024. The petition warned of the risks posed by China’s dominance in maritime logistics and its impact on competition and supply chain stability. The USTR’s final report concluded that China’s practices unfairly disadvantage foreign competitors and create overreliance on Chinese production.
China’s Ministry of Commerce had previously condemned the U.S. probe, calling it “a mistake on top of a mistake,” but has not yet commented on the newly enacted fees.
In a notable shift in tone, former President Trump hinted at restraint regarding further tariff hikes. “At a certain point, I don’t want them to go higher… you want people to buy,” he said during a White House briefing. Despite this, the administration has already imposed sweeping 145% tariffs on all Chinese imports.
In response, Beijing slapped 125% tariffs on American goods and warned it could redirect retaliatory measures toward the U.S. services sector—potentially impacting industries such as tourism, education, and legal consultancy.
The policy marks a significant step in the Trump administration’s broader effort to decouple strategic industries from China and promote domestic manufacturing, with shipping now emerging as a new front in the ongoing economic standoff.
