- The Trump administration finalized aggressive port fees (starting October 2025) targeting Chinese-built or operated vessels docking at U.S. ports and escalating yearly (up to 140 per net ton by 2028).
- The policy aims to counter China's state-subsidized shipping dominance by incentivizing orders for U.S.-built ships. Operators can avoid fees by sourcing American vessels within three years or owe retroactive charges.
- Bulk cargo (coal, grain), Caribbean shipping and LNG carriers (temporarily) are exempt. Critics, including the World Shipping Council, warn of higher global shipping costs and U.S. inflation without meaningful industry revival.
- China condemned the move as "harmful to all," vowing to defend its interests. Officials argued the fees would raise costs for U.S. consumers and fail to boost American shipbuilding.
- The Biden administration maintained Trump's China tariffs and added new ones (e.g., 221 percent on chassis), exacerbating supply chain bottlenecks. These policies reflect ongoing economic tensions despite bipartisan criticism of their inflationary impact.
The Trump administration has unveiled aggressive
new port fees targeting Chinese-built and Chinese-operated vessels docking at U.S. ports to revive America's struggling shipbuilding industry.
Originally, the plan was initiated the Biden administration to challenge China's "global shipping monopoly," which has left the U.S. responsible for less than one percent of the world's commercial shipbuilding output. However, it was only finalized after a U.S. Trade Representative (USTR) investigation accused China of unfair trade practices in its shipbuilding sector, including heavy state subsidies that have crushed American competitors.
Before the finalization, the USTR softened initial proposals by shifting to a per-voyage fee rather than a per-port charge.
The phased-in tariffs, set to roll out over the next three years, imposes escalating costs on Chinese-linked vessels docking at U.S. ports, with charges taking effect after a 180-day grace period on Oct. 14, 2025 ($50 per net ton), April 17, 2026 ($80 per net ton), April 17, 2027 ($110 per net ton) and April 17, 2028 ($140 per net ton).
Additionally, container ships, which can weigh between 50,000 and 220,000 tons, could face fees as high as $1.8 million per voyage. Ship operators face a separate fee structure, with container charges starting at $120 per container and increasing to $250 by 2028. Owners can avoid these fees by ordering U.S.-built ships, but if those ships aren't delivered within three years, all waived fees become retroactively due.
Exemptions were granted for bulk cargo (coal, grain), Great Lakes and Caribbean shipping, U.S. territories and empty vessels entering U.S. ports. Foreign-built car carriers and liquefied natural gas (LNG) ships also received a temporary reprieve, with LNG vessels given a three-year grace period before gradually increasing fees over 22 years.
"Ships and shipping are vital to American economic security and the free flow of commerce," Jamieson Greer, U.S. Trade representative, said on April 17. "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."
China immediately rebukes Trump's new port fees
The next day, April 18,
China immediately rebuked the new port fees.
China's commerce ministry called on the United States to stop "shifting blame" and swiftly correct its "wrong" economic practices.
"China is strongly dissatisfied and firmly opposed to this," the Chinese commerce ministry said. "China will closely follow the relevant developments of the U.S. and will resolutely take necessary measures to safeguard its own rights and interests." (Related:
Trump's 125% tariff triggers panic among Chinese Amazon sellers.)
Similarly, Chinese Foreign Ministry spokesman Lin Jian criticized the U.S. in a regular press briefing for imposing port fees and additional tariffs on Chinese shipping equipment. She even called the actions "measures that harm others and the U.S. itself."
"It not only raises global shipping costs and disrupts the stability of the global industry but also increases inflation pressures in the U.S., harming the interests of American consumers and businesses," Lin said, adding that the measures would "eventually fail to revitalize the U.S. shipbuilding industry."
The World Shipping Council (WSC) also weighed in, expressing "serious concerns" about the port fees and criticizing the policy as "a step in the wrong direction."
"The WSC is urging the Administration to reconsider this counterproductive measure, which risks harming U.S. consumers, manufacturers and farmers without delivering meaningful progress toward revitalizing the U.S. maritime industry," the WSC said.
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Sources include:
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BTimesOnline.com
CNN.com
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