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The U.S. Trade Representative (USTR) has proposed a tariff of up to $1.5 million per Chinese-built ship entering American ports, aiming to counter China’s dominance in global shipbuilding and promote the use of U.S.-manufactured vessels. The proposal, currently open for public comment with a hearing scheduled for March 24, 2025, is framed as part of a broader initiative to rebuild the U.S. maritime industry and reduce reliance on foreign-built ships—especially those subsidized by the Chinese government.

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However, major players in the maritime industry, including the International Chamber of Shipping (ICS), BIMCO, and the Chamber of Shipping of America (CSA), have voiced strong opposition. They warn that the measure could severely disrupt U.S. trade, drive up shipping costs, and ultimately hurt American businesses and consumers. Given that China builds over 60% of the world’s merchant vessels, and nearly all container ships entering U.S. ports are Chinese-built, critics say the fees could make imported goods more expensive, threaten port operations, and discourage foreign carriers from servicing U.S. trade routes.

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Industry leaders also argue that the U.S. shipbuilding sector is not currently equipped to meet the demand such a policy would create. Due to years of decline, U.S.-built ships are roughly four times more expensive and can take more than a decade to deliver, making them unviable for most commercial operations. Ports like SeaPort Manatee in Florida warn the fees could force companies like World Direct Shipping to shut down U.S. routes, diverting cargo to trucks and increasing congestion at border crossings. Experts believe that without broader legislative support—such as the proposed SHIPS for America Act—the port fee alone may cause more economic harm than strategic benefit.

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Maritime Industry Warns USTR’s China Port Fees Could Sink U.S. Economy – gCaptain

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