Trump administration scales back China ship fee plan

[WORLD] The Trump administration on Thursday eased plans to impose steep port fees on China-built vessels, offering exemptions for domestic exporters and vessel operators serving the Great Lakes, Caribbean, and U.S. territories. The move is part of a broader strategy aimed at bolstering American shipbuilding and challenging China’s growing dominance in global shipping.

The decision highlights intensifying friction between Washington and Beijing over trade and maritime control. China, now the world’s top commercial shipbuilder, produces nearly half of all new vessels annually. U.S. officials accuse Beijing of employing unfair trade practices—including state subsidies and coercive technology transfers—that undercut global competitors and raise both economic and national security concerns.

Originally floated in February, the proposal had called for port fees of up to $1.5 million per call for ships built in China, sparking alarm across the shipping sector. A Federal Register notice released Thursday showed a scaled-back version of the plan, reflecting pressure from trade groups and industry stakeholders.

Organizations like the American Association of Port Authorities and the National Retail Federation argued the hefty levies could disrupt already strained supply chains and lead to unintended consequences—such as incentivizing shippers to use flags of convenience to evade scrutiny.

Shipping executives warned that widespread fee imposition could sharply raise the cost of U.S. exports and burden consumers with billions in additional expenses. They cautioned that nearly every ocean carrier could face compounding charges under the initial framework.

In response, the U.S. Trade Representative (USTR) revised the plan to apply the fee only once per voyage, capping the charge at six times per year per vessel. The update signals an attempt to walk a fine line—taking a firm stance against China while minimizing harm to U.S. economic interests.

To further soften the impact, the revised framework exempts key trade corridors and forgoes earlier provisions that would have penalized fleets based on the proportion of Chinese-built vessels or future ship orders. Ships arriving empty to load bulk goods like coal and grain will also be spared.

The new rules are set to take effect in six months. Bulk carriers will be charged based on cargo weight, while container ships will pay fees according to the number of containers aboard. Whether the final amounts will fall below the original estimates remains uncertain.

Industry experts say the phased implementation offers shippers time to adapt but leaves open the question of Beijing’s potential response. China has historically answered U.S. trade measures with retaliatory tariffs and regulatory barriers, raising concerns that American shipping or logistics firms operating in Chinese ports could face new hurdles.

The timing of the announcement aligns with the one-year anniversary of USTR’s investigation into China’s maritime conduct, which concluded in January that Beijing engages in unfair practices to assert global shipping dominance. The watered-down fee structure follows intense lobbying from both domestic and international stakeholders—including port authorities, vessel owners, exporters, and importers of commodities ranging from coal to agricultural goods.

Critics of the initial plan warned that its broad scope risked penalizing the very sectors it aimed to protect. Major container lines like MSC and Maersk, which typically call at several U.S. ports per journey, voiced concern that the cumulative costs would escalate rapidly under the original scheme.

The USTR is also preparing additional trade actions, including a proposed 100% tariff on ship-to-shore cranes, container chassis, and related parts—most of which are sourced from China. A hearing on those measures is scheduled for May 19.