Late Thursday, the US proposed a multi-phase port tax plan for shipping tied to China that is dependent on ship size. The reset follows outspoken resistance to the US Trade Representative's proposed millions of dollars in fees from shippers, exporters, and other marine stakeholders during public hearings in March.
The long-term strategy also accounts for the anticipated years-long increase in the capacity of domestic shipyards. The United States manufactures around five ships annually, while China produces about 1,700.
According to the USTR action's specifics, Chinese vessel owners and operators would not be charged any fees for the first 180 days starting on April 17. The fee will start at $50 per net ton every U.S. voyage after 180 days and rise gradually over the next few years, reaching $140 by April 17, 2028. Each vessel may be assessed the cost up to five times annually. The fees are applied per vessel each rotation or series of port calls and will not be stacked.
The price for ships built in China is free for the first 180 days, after which it will increase gradually to $18 per net ton, reaching $33 by April 17, 2028. Once more, each vessel may incur the fee up to five times year. This price is applicable if it exceeds alternative fees of $120 per unloaded container, which rises to $250 after three years. The changes exempt U.S.-flagged carriers operating Chinese-built ships in short-sea service, and specialty export vessels such as liquid bulk carriers.
In addition, the fees do not apply to Chinese-built ships:
If a vessel operator orders and receives a U.S.-built vessel of comparable size within that time frame, they are eligible for a charge remission for a maximum of three years. To encourage the development of ro-ro vessels at U.S. shipyards, the USTR announced for the first time that foreign-built car carriers would be subject to fees based on their capacity. For 180 days, there will be no charge, and after that, each vehicle equivalent (CEU) unit will cost $150.
The plan's second phase, which includes limited limits on shipping LNG via foreign boats and is not effective for three years, aims to encourage the use of U.S.-built LNG tankers. Over a 22-year period, these limits will progressively rise.
In addition to the current tariffs, the USTR is now seeking public input on proposed 100% tariffs on Chinese-made ship-to-shore cranes and 20% to 100% levies on containers and chassis. On May 19, a hearing is planned.
In a press statement, U.S. Trade Representative Jamieson Greer stated that "ships and shipping are vital to American economic security and the free flow of commerce." "The Trump administration's actions will address supply chain threats, start to reverse Chinese dominance, and send a demand signal for ships built in the United States."
The fees, which opponents claimed would have severely slowed ocean transportation to U.S. ports, might have reached $3 million per ship per call. In order to avoid smaller ports and create congestion at the main hubs, they predicted that carriers would probably combine calls at the largest container gateways. With the fees looming over chartering deals, exporters of bulk commodities, including agricultural items, had reported trouble procuring boats.