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US Strikes Back: New Fees Target China¡¯s Shipping and Shipbuilding

Key Measures Announced

Following a year-long Section 301 investigation, the USTR unveiled a two-phase plan to counter China¡¯s maritime dominance:

Phase 1 (October 2025):

• $50/net ton fee for China-owned/operated vessels (gradually increasing over 3 years).

• Container/car carriers: Fees based on net tonnage or container count (whichever is higher).

• Exemptions: Ships in US security programs, empty dry bulk carriers bound for US exports.

Phase 2 (April 2028):

• LNG carrier restrictions: Gradual 22-year phase-in to boost US-built LNG vessels (critical as the US is the world¡¯s top LNG exporter).

Controversial Rationale

• Proponents: Argue China¡¯s shipping dominance threatens US economic security.

• Critics: Call it a ¡°backdoor tariff¡± that will:

• Raise consumer prices

• Disrupt trade flows

• Burden US ports

Industry Reality:
China¡¯s 20-year lead in shipbuilding¡ªbacked by subsidies and tech¡ªwon¡¯t be undone by fees alone.

Why This Matters Globally:

• Trade Ripple Effect: 80% of global goods move by sea; fee hikes could inflate costs across supply chains.

• Strategic Shift: US aims to reduce foreign reliance in commercial shipbuilding and LNG transport.

Public comments on port crane tariffs are open until May 8, 2025.