Trump Administration Proposes Massive Port Fees on Chinese-Built Vessels

The Office of the United States Trade Representative (USTR) has announced sweeping new measures targeting China’s growing dominance in global maritime sectors, including potential fees of up to $1.5 million per port call for Chinese-built vessels, $1 million per port call for operators of Chinese-built ships, and mandatory U.S.-flag shipping requirements.

The proposed actions, published to the Federal Register on Friday by Acting U.S. Trade Representative Juan Millan, come after a recent USTR Section 301 investigation found that “China’s acts, policies, and practices to be unreasonable and to burden or restrict US commerce.”

The investigation was initiated following a petition filed in March 2024 by five major U.S. labor unions, including the United Steel Workers and the Maritime Trades Department, AFL-CIO?

The USTR’s findings reveal China’s dramatic rise in global ship production—from less than 5% in 1999 to over 50% in 2023. China also dominates the maritime supply chain, controlling 95% of global shipping container production and 86% of the world’s intermodal chassis supply. Additionally, China’s ownership of the global commercial fleet has reached over 19% as of January 2024.

“China frames its targeting for dominance in the maritime, logistics, and shipbuilding sectors in nationalistic terms as a zero-sum contest pitting companies it controls against all others,” states the USTR report, which also highlights how China’s state-backed entities benefit from extensive subsidies, preferential financing, and…