Trump administration eases port fees on Chinese ships amid backlash from industry, aims to boost domestic shipbuilding

US eases port fees on China-built ships after industry backlash

US President Donald Trump has sparked fresh tensions with China by introducing new port fees on ships built or operated by Chinese companies.

However, the move brought some relief for China, as the final version of the tariff was slightly scaled back from the much harsher plan initially proposed after the industry backlash.

Aimed at giving a boost to the struggling U.S. shipbuilding industry, the move includes key exemptions—U.S. exporters and vessel operators working in the Great Lakes, Caribbean, and U.S. territories won’t have to pay the port fees on China-built vessels.

The US Trade Representative issued a notice in Federal Register that eased up on an earlier plan from February, which had proposed charging up to $1.5 million every time a China-built ship docked at a U.S. port. That earlier proposal had shaken up the global shipping industry, but the final version was much less severe.

"Ships and shipping are vital to American economic security and the free flow of commerce," US Trade Representative Jamieson Greer said in a statement to news agency Reuters.

"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" he further added.

The new fees on Chinese-built ships add more fuel to the growing trade tensions between the U.S. and China, as President Trump pushes for talks following his steep 145% tariffs on many Chinese goods.

In response to strong pushback from the global shipping industry—including U.S. port operators and exporters of goods like coal, corn, bananas, and cement—the plan was revised.

Some exemptions were granted, and the fees will be phased in gradually, recognizing that U.S. shipbuilders, who produce just a few vessels a year, can’t yet compete with China’s massive output of over 1,700 ships annually.

The updated rules exclude ships that operate between U.S. ports, the Caribbean, and U.S. territories. Vessels from both the U.S. and Canada serving the Great Lakes were also spared.

New fees for Chinese-built ships based on ownership and cargo

The new fees will apply once per voyage, with a cap of six charges per year for each affected ship.

Starting October 14, Chinese-built and owned vessels will face a fee of $50 per net ton, which will go up by $30 each year for the next three years. An alternative fee structure charges per container—$120 per container at first, increasing to $250 after three years. The higher of the two rates will be applied.

For Chinese-built ships that are owned by companies outside of China, the fee starts lower at $18 per net ton, with a $5 annual increase over the same three-year period.

The agency, which will implement the levies in 180 days, also declined to impose fees based on the percentage of Chinese-built ships in a fleet or on prospective orders of Chinese ships, as originally proposed.

In addition to the fees, Greer also announced proposed tariffs on some ship-to-shore cranes and on Chinese cargo handling equipment.

China’s shipping dominance targeted with new tariffs 

The USTR's investigation into China’s maritime practices, found that China’s policies unfairly dominating global shipping. Both the Biden and Trump administrations agree on the need to revive U.S. shipbuilding and naval strength.

Union leaders support this initiative, hoping to create jobs, while the American Apparel & Footwear Association warns that higher fees and tariffs will increase costs for consumers. A hearing on May 19 will discuss potential tariffs on Chinese-made port equipment, but it’s unclear whether the funds raised will go toward US shipbuilding.

(With agency inputs)