U.S. Imposes New Port Fees on Chinese Ships to Boost Domestic Shipbuilding Industry
The U.S. has finalized a plan to impose port fees on Chinese ships and vessels built in China to counter China's dominance in global shipbuilding and boost U.S. maritime manufacturing. Announced by the U.S. Trade Representative, the tiered fee structure will start in 180 days and increase annually over three years. The policy, softened from earlier proposals, reflects bipartisan support to rebuild U.S. shipbuilding and reduce reliance on Chinese infrastructure. Exemptions include empty vessels for U.S. exports and ships in U.S. Maritime Administration programs.
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04/18 04:36
U.S. Imposes New Port Fees on Chinese Ships to Boost Domestic Shipbuilding Industry
The U.S. has finalized a plan to impose port fees on Chinese ships and vessels built in China to counter China's dominance in global shipbuilding and boost U.S. maritime manufacturing. Announced by the U.S. Trade Representative, the tiered fee structure will start in 180 days and increase annually over three years. The policy, softened from earlier proposals, reflects bipartisan support to rebuild U.S. shipbuilding and reduce reliance on Chinese infrastructure. Exemptions include empty vessels for U.S. exports and ships in U.S. Maritime Administration programs.
A Strategic Shift in Maritime Policy
The USTR’s final determination marks a strategic pivot in U.S. trade and industrial policy, targeting China’s overwhelming control of the global shipbuilding sector. Chinese shipyards currently account for nearly half of global dry bulk newbuild orders, supported by extensive state subsidies, low labor costs, and a vertically integrated industrial base. In contrast, U.S. shipyards produce only a handful of commercial vessels annually.
“Ships and shipping are vital to American economic security and the free flow of commerce,” said U.S. Trade Representative Ambassador Jamieson Greer. “The administration’s actions will begin to reverse Chinese dominance, address threats to the U.S. supply chain, and send a demand signal for U.S.-built ships” USTR Targets China’s Maritime Dominance with New Fee Structure and U.S. Build Incentives.
Fee Structure and Implementation Timeline
The new port fees will apply to Chinese-owned vessels and ships built in China, with charges assessed based on cargo type and vessel configuration. The structure includes:
- A $50 per net ton fee on Chinese-owned ships, increasing by $30 annually for three years.
- Chinese-built ships owned by non-Chinese firms will be charged $18 per ton, rising by $5 annually.
- Container ships will face a fee of $120 per container, increasing to $250 over three years.
- Non-U.S.-built vehicle carriers will be charged $150 per Car Equivalent Unit (CEU).
- Fees will be applied once per voyage and capped at five times per year per vessel.
The policy includes a 180-day grace period before enforcement begins on October 14, 2025. The USTR has also introduced a “fee remission pathway,” allowing operators to suspend service fees for up to three years if they commit to purchasing U.S.-built vessels of equivalent or greater size USTR Targets China’s Maritime Dominance with New Fee Structure and U.S. Build Incentives.
Exemptions and Revisions After Industry Pushback
The final plan reflects significant revisions from a more aggressive February proposal, which had suggested flat fees of up to $1.5 million per port call. That earlier version drew sharp criticism from U.S. exporters, logistics providers, and domestic port operators, who warned of severe cost burdens and trade disruptions.
In response, the USTR dropped proposals to penalize operators based on the percentage of Chinese-built ships in their fleets or on future orders. The revised plan also includes several exemptions:
- Empty vessels arriving to load U.S. bulk exports such as coal or grain.
- Ships operating between U.S. ports, U.S. territories, and Caribbean islands.
- U.S. and Canadian vessels calling at Great Lakes ports.
- Vessels enrolled in U.S. Maritime Administration programs and smaller ships in short-sea trades.
The fee will be assessed only at the first U.S. port of entry per voyage, rather than at every port call, to avoid disproportionate impacts on smaller ports United States Eases Port Fees on China-Built Ships After Industry Backlash.
A Broader Industrial Strategy
The port fee initiative is part of a broader U.S. strategy to rebuild domestic shipbuilding and reduce strategic vulnerabilities in maritime infrastructure. The USTR has also proposed tariffs of up to 100% on ship-to-shore cranes manufactured in China or by Chinese-controlled firms, citing national security concerns over China’s dominance in port equipment manufacturing.
A second phase of the maritime policy, set to begin in three years, will introduce additional restrictions favoring U.S.-built ships transporting liquefied natural gas (LNG). These measures will be phased in over 22 years, signaling a long-term commitment to reshaping the U.S. maritime sector USTR Targets China’s Maritime Dominance with New Fee Structure and U.S. Build Incentives.
Domestic Capacity Constraints and Industry Concerns
While the policy aims to stimulate demand for U.S.-built ships, industry stakeholders have raised concerns about the limited capacity of American shipyards. U.S. yards currently produce only about five commercial vessels per year, compared to over 1,700 annually in China. The fee remission incentive may encourage orders, but the domestic industry’s ability to meet demand remains uncertain.
The USTR acknowledged these limitations, noting that the phased implementation and exemptions are designed to give U.S. shipbuilders time to scale up. Still, the policy’s success will depend on parallel investments in shipyard infrastructure, workforce development, and supply chain resilience The U.S. Shipbuilding Industry vs. China and the Issue of Port Tariffs.
Political and Strategic Context
The port fee initiative reflects a rare point of bipartisan agreement in Washington. Both the Biden and Trump administrations have supported efforts to counter China’s maritime dominance and revive U.S. shipbuilding. The USTR’s investigation, launched under President Biden and concluded under President Trump, found that China’s maritime policies have “severely disadvantaged U.S. companies, workers, and the U.S. economy” US Lays Out Plans to Hit Chinese Ships with Port Fees.
The policy also aligns with broader tariff actions by the Trump administration, which has imposed duties of up to 145% on Chinese imports and a temporary 10% blanket tariff on goods from other countries. When combined with existing levies, some Chinese goods now face tariffs as high as 245%.
