US Plans New Port Fees for Chinese Ships in Bid to Bolster Local Shipbuilding

The US Trade Representative has announced plans to impose fees on Chinese ships visiting American ports, starting at $50 per ton of cargo. While aimed at supporting US shipbuilding, critics warn it could exacerbate global trade tensions and affect consumer prices in the US.

The Trump administration has recently revealed its plans to implement port fees on Chinese ships as part of a strategy to bolster domestic shipbuilding industries and counter China's growing dominance in the maritime sector. This announcement from the US Trade Representative (USTR) indicates an effort to protect American jobs and the economy, although the proposed measures are deemed less severe than earlier plans that suggested fees of up to $1.5 million for each Chinese vessel at US ports.

The new fees are scheduled to take effect in 180 days and will gradually increase over the coming years. The USTR expressed concerns about China's previous achievements in dominating the shipbuilding market, stating its actions have placed American companies and workers at a significant disadvantage. Under the new framework, the fees imposed on Chinese ship owners will vary based on cargo weight for bulk vessels and the number of containers for container ships, starting at $50 per ton initially and rising incrementally by $30 per ton annually for the next three years.

Similarly, fees applicable to ships built in China will begin at $18 per ton or $120 per container, with planned increases over the following years. Non-US built ships that carry vehicles will incur charges of $150 per vehicle, applied once for each voyage and capped at six times yearly. Notably, empty vessels destined for US ports to transport bulk exports, such as grain or coal, will be exempt from these fees, which USTR clarified is aimed to not stifle trade.

The USTR has also outlined plans for a secondary phase focused on promoting US-built ships capable of transporting liquefied natural gas (LNG), with additional restrictions anticipated to be applied progressively over the next two decades. However, experts warn the imminent fee system could further complicate an already tumultuous global trade environment intensified by President Trump's existing tariff policies.

With the new measures, cargoes initially intended for US ports from China are reportedly being diverted to European destinations, potentially resulting in higher prices for American consumers as certain goods become scarcer. Recent data highlights a 15% increase in Chinese imports to the UK in early 2025, indicating a direct consequence of ongoing US trade actions.

Logistics industry leaders point out that both the tariffs and unexpected strikes at major European ports contribute to congestion, particularly in the UK and across critical continental hubs such as Rotterdam and Barcelona. Analysts suggest this shift in trade routes may require significant adjustments in supply chains.

Overall, while the administration aims to support US manufacturers with these new port fees, the unfolding situation presents a complicated backdrop of high tariffs and anticipated escalations that experts believe may ultimately hinder international trade and affect prices for consumers domestically and abroad.