The Trump administration has revised its controversial proposal to impose steep fees on China-built vessels, offering relief to U.S. exporters and port operators. Originally set to levy up to $1.5 million per port call, the new plan caps the fee at once per voyage, with a maximum of six charges per year. The update, posted in the Federal Register by the U.S. Trade Representative (USTR), reflects significant pushback from global maritime stakeholders concerned about soaring export costs and consumer prices.
Domestic vessel owners operating in the Great Lakes, the Caribbean, and U.S. territories are exempt from the fee, as are empty vessels arriving to load bulk exports like coal and grain. The revised rule also drops earlier provisions that would penalize fleets based on their number of Chinese-built ships or pending orders. Instead, bulk ships will be charged based on cargo weight, while container ships will pay fees based on the number of containers onboard. The exact fee amounts remain unspecified.
The fee rollout begins in six months, part of a broader U.S. strategy to revive domestic shipbuilding and counter China’s dominance in global shipping. The announcement coincides with the one-year mark of a USTR investigation that concluded China employs unfair trade practices in the maritime sector.
Industry leaders, including operators like MSC and Maersk, had warned the original plan would lead to cascading costs as cargo ships make multiple U.S. port calls per voyage. The backlash prompted the administration to reconsider its approach, balancing trade protection with economic impact.
The USTR will hold a hearing on May 19 to discuss further tariffs on Chinese-made port equipment, including cranes and container chassis, which may face 100% duties under a proposed expansion of trade measures.