US Introduces Port Fees for Chinese Ships to Strengthen Domestic Shipbuilding

The U.S. plans to impose port fees on Chinese ships as part of an effort to bolster local shipbuilding and counter China's lead in the industry. With concerns over global trade disruptions, the financial impact on U.S. consumers and businesses remains uncertain.

The Trump administration has initiated a plan to impose port fees on Chinese vessels, marking a strategic move to bolster the U.S. shipbuilding sector and counter China’s prevailing position in the industry. The U.S. Trade Representative (USTR) outlined these fees, which differ from earlier proposals that suggested charges as high as $1.5 million per port visit for Chinese ships.

Set to take effect within 180 days, the fees will escalate in subsequent years. The USTR’s statement noted the goal is to rectify the imbalance caused by China's maritime dominance, which it claims disadvantages American companies, workers, and the economy.

The fee structure will depend on various metrics, including cargo weight, container quantity, and vehicle count. Specifically, bulk carriers will face a fee of $50 per ton of cargo, inflating by $30 annually over three years. Container ships built in China will incur charges starting at $18 per ton or $120 per container, with similar increases over time. Additionally, non-U.S. built ships transporting cars will see fees of $150 per vehicle.

Exemptions apply to empty vessels arriving in the U.S. for bulk exports, intra-American shipping, as well as trade to U.S. territories and Canadian ports in the Great Lakes. A subsequent phase in the strategy aims to favor U.S.-built ships carrying liquefied natural gas (LNG), with increasing restrictions planned over the next 22 years.

This announcement emerges amid ongoing trade tensions that have already disrupted global commerce due to Trump’s tariff policies. There is evidence that cargo intended for the U.S. from China is being redirected to ports in Europe, raising concerns among businesses and analysts that product prices in the U.S. could escalate.

Professor Marco Forgione of the Chartered Institute of Export & International Trade observed notable congestion at European ports like Rotterdam and Felixstowe, attributing some of the buildup to the redirection of vessels from China. He indicated that U.S. tariffs could lead to a shrinkage in global trade, impacting various economies.

Moreover, logistics expert Sanne Manders pointed to congestion challenges exacerbated by labor strikes in Europe and the increasing likelihood that businesses will reconfigure their supply chains in response to U.S. tariffs. While U.S. consumers may face higher costs due to these fees and tariffs, the impact on European consumers is expected to be minimal.