President Donald Trump’s plan to boost the US shipbuilding industry by imposing fees on Chinese ships could harm domestic operators, seaports, exporters, and jobs. The proposed stacking fees on China-built vessels could top $3 million per U.S. port call.
Industry executives argue that the fees would hurt US vessel operators who rely on China-made vessels, dampen demand for US-built ships, and push cargo to foreign-owned shipping companies. With China’s growing commercial and military dominance in the high seas, the US steelworker unions, US steel producers, and Democratic lawmakers support the effort.
However, US maritime industry executives are concerned that the fees would inadvertently destroy American-owned carriers, which would drive demand for orders from US shipyards. Seaboard Marine CEO Edward Gonzalez testified that national interest will not be served if the efforts to boost American shipbuilding unintentionally destroy American-owned carriers.
The proposed fee would penalize Chinese vessels and the US marine transportation system, according to industry executives. Shipbuilders in Japan and Korea would struggle to meet demand in the years it takes for US shipyards to build up capacity.
US vessel operators underpin key American industries like manufacturing, mining, and agriculture by transporting goods. Agriculture exporters are already struggling to book ships beyond May due to uncertainty around the proposed plan, and coal industry representatives have said the fees make it harder to get supplies onto the global market.
The US vessel operators warn that the port fees would result in job losses, higher costs for American exports and imports, shortages, and rising prices for American consumers. Representative Rosa DeLauro and 62 other congressional Democrats back the proposed fees and urge swift action, saying China’s domination imposes unacceptable costs and risks on job losses and critical manufacturing capacity.
The US Trade Representative will continue to hear comments before finalizing the proposal under unfair trade practices law. To avoid the fees, vessel operators must be based outside of China, have fleets with fewer than 25% of ships built in China, and no Chinese shipyard orders or deliveries scheduled within two years.
Source: https://www.reuters.com/markets/trumps-fees-chinese-ships-will-hurt-us-companies-maritime-executives-tell-2025-03-24