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U.S. Sets New Port Fees on Chinese Ships to Boost Domestic Shipbuilding
The Trump administration has announced new port fees targeting Chinese ships and vessels built in China. The goal is to encourage investment in American shipyards and reduce dependence on China’s shipping industry, which dominates global trade.
What the New Policy Means
Starting this October, shipping companies using Chinese-built vessels or operated by Chinese firms will face additional charges when docking at U.S. ports. The charges will be calculated based on the ship’s container load or weight, whichever is higher. For example, a ship carrying 7,000 containers could pay over $1 million under the new system.
Fees are set to increase in 2028, reaching $250 per container and $140 per net ton of ship weight. However, companies can avoid or lower these fees by purchasing U.S.-built ships in the coming years.
Why This Policy
The new rules stem from a union-led petition during the Biden administration that claimed Chinese subsidies were harming the U.S. shipbuilding industry. The U.S. Trade Representative’s Office finalized the rules under Trump, emphasizing the need to rebuild national maritime strength and secure American supply chains.
“We’re sending a strong signal to invest in American shipbuilding,” said Jamieson Greer, a senior trade official.
Industry Concerns Over Higher Costs
Critics argue the move could increase costs for American consumers. Since many goods are shipped on Chinese vessels, added fees might be passed down to buyers.
Nate Herman from the American Apparel and Footwear Association said, “These added costs could lead to higher prices and product shortages for U.S. families.”
Shipping experts also questioned whether the policy would truly revive U.S. shipbuilding. American shipyards currently lack the capacity to produce large vessels at the same scale and cost as China, Japan, and South Korea.
Who’s Exempt?
The administration made some exceptions to ease the impact. Ships traveling short distances (under 2,000 nautical miles) or using smaller ports are exempt. Also, the fee will apply only once per trip, not at every port stop.
Additionally, smaller shipping companies won’t have to pay the fees, and larger firms are already planning ways to adjust their routes to minimize exposure.
LNG Carriers a Long-Term Focus
The policy also encourages the U.S. to build ships that carry liquefied natural gas (LNG), a key export. A new requirement says that by 2029, at least 1% of U.S. LNG exports must be transported on American-built vessels. But experts say that’s unrealistic given the lack of U.S. shipyards capable of producing such specialized ships.
