The Trump administration took steps to impose levies on Chinese vessels docking at U.S. ports, threatening to shake up global shipping routes and escalate the trade war between the world’s two biggest economies.
Under a plan put forward by the U.S. Trade Representative on Thursday, all Chinese-built and -owned ships docking in the U.S. would be subject to a fee based on the volume of goods carried. The proposal follows a months-long investigation ordered by the Biden administration into whether Chinese shipbuilding threatens US national security.
The so-called 301 petition ordered the fee to go into effect in six months, with another phase restricting foreign-built vessels that transport liquefied natural gas to begin in three years. After six months, the fee for Chinese vessels would be set at $50 per net ton and then increase incrementally over three years.
Chinese-built vessels would be assessed based on net tonnage or per container. Funds from the docking fees would be used to help revitalize the waning U.S. shipbuilding industry, which long ago pivoted from building commercial ships to focusing on naval contracts.
Labor unions representing steel workers and the shipbuilding industry applauded the move by the USTR, saying the fees would reinvigorate domestic shipping.
Trump has long argued that China’s dominant role in the maritime industry has made the U.S. overly dependent on the Asian nation, echoing the concerns of some shipbuilders. But U.S. importers who rely on Chinese vessels to move everything from crude oil to retail goods see the docking fees as a de-facto tariff that would compound the already dizzying slate of duties Trump has imposed on global imports.
Representative Angie Craig of Minnesota, the top Democrat on the House Agriculture Committee, said in a statement the fees threaten American farmers looking to ship their goods.
Opponents of the plan said at a March hearing that the move would raise prices for consumers, disrupt trade and threaten U.S. ports. Shippers also point out that China’s dominant position in shipping, established over the past two decades, would be difficult to overcome with the fee alone.
During the first phase, Chinese vessel owners and operators would be charged a fee per net ton. Container ships and those carrying automobiles would be subject to separate charges.
A second phase beginning in three years would limit liquefied natural gas shipments on foreign vessels, with restrictions increasing incrementally over 22 years. The U.S. is the world’s biggest exporter of LNG.
Adam Shaffer, vice president of international trade and global affairs of the Recycled Materials Association (ReMA), said the group was pleased that the administration chose not to impose fees on Chinese-built vessels that arrive empty at American ports. He added that his group would continue to evaluate the potential impact on its members on other fees.
