How the US Plans to Counter China’s Shipping Dominance with New Fees

US Strikes Back: New Fees Target China’s Shipping and Shipbuilding

Key Measures Announced

Following a year-long Section 301 investigation, the USTR unveiled a two-phase plan to counter China’s maritime dominance:

Phase 1 (October 2025):

• $50/net ton fee for China-owned/operated vessels (gradually increasing over 3 years).

• Container/car carriers: Fees based on net tonnage or container count (whichever is higher).

• Exemptions: Ships in US security programs, empty dry bulk carriers bound for US exports.

Phase 2 (April 2028):

• LNG carrier restrictions: Gradual 22-year phase-in to boost US-built LNG vessels (critical as the US is the world’s top LNG exporter).

Controversial Rationale

• Proponents: Argue China’s shipping dominance threatens US economic security.

• Critics: Call it a “backdoor tariff” that will:

• Raise consumer prices

• Disrupt trade flows

• Burden US ports

Industry Reality:
China’s 20-year lead in shipbuilding—backed by subsidies and tech—won’t be undone by fees alone.

Why This Matters Globally:

• Trade Ripple Effect: 80% of global goods move by sea; fee hikes could inflate costs across supply chains.

• Strategic Shift: US aims to reduce foreign reliance in commercial shipbuilding and LNG transport.

Public comments on port crane tariffs are open until May 8, 2025.