The Trump administration has proposed levies of up to $1.5 million on Chinese-made ships arriving at US ports, threatening to increase costs for imports and sparking concerns over the impact on businesses and consumers.
The proposal, which aims to encourage the revival of a domestic shipbuilding industry after decades of decline, would apply even if the vessel was built elsewhere but operated by carriers with fleets including Chinese ships. This could lead to higher costs for imports ranging from raw materials to finished goods, potentially fueling inflation.
Industry experts warn that the plan could harm US efforts to promote domestic production and create jobs. The levies could also disrupt international trade, with importers likely reducing their use of American ports and instead shipping into Mexico and Canada via trucks and rail.
“The proposed fees are huge, and they will get rolled into what shippers have to pay, and hence consumers,” said Willy Shih, an international trade expert at Harvard Business School. “It’s a really aggressive move that reflects an administration that is either out of touch with how the world really works or that doesn’t care and wants to cause chaos.”
The proposal has sparked criticism from industry leaders, who argue that it is unrealistic given the current state of US shipyards. The plan calls for at least 15% of American exports to be shipped on US-flagged vessels within seven years, which many believe is unachievable.
With the administration fielding comments on the proposal until March 24, President Trump could impose the levies by executive order. The move would further escalate tensions in the global trade conflict and raise concerns over the impact on businesses, consumers, and the overall economy.
Source: https://www.nytimes.com/2025/02/26/business/trump-china-shipping.html