In a significant broadening of the ongoing U.S.-China trade confrontation, the Trump administration has introduced a sweeping proposal to impose levies on Chinese-built and Chinese-owned ships docking at U.S. ports. The move, announced Thursday by the Office of the U.S. Trade Representative (USTR), aims to reshape global shipping patterns and strengthen U.S. shipbuilding capabilities, which have eroded over decades of foreign competition.
The proposed fee structure - stemming from a Section 301 investigation launched by the Biden administration - would initially charge $50 per net ton on qualifying vessels, with phased increases over a three-year period. These charges would apply per voyage, offering some flexibility compared to earlier plans to tax ships per port call - an approach that raised alarms in the shipping industry over increased congestion and cost burdens. The so-called 301 petition ordered the fee to go into effect in six months.
Beyond targeting Chinese vessels, the plan would also introduce fees on foreign-built vehicle carriers entering the U.S., part of a broader effort to incentivise the use of American-made ships. A secondary phase, set to take effect in three years, would limit access for non-U.S.-built vessels transporting liquefied natural gas (LNG), further tightening control over strategic shipping routes.
U.S. labour unions in the steel and shipbuilding sectors welcomed the proposal, viewing it as a long-overdue step toward reviving domestic manufacturing. Revenue generated from the levies would be directed to support U.S. shipbuilding infrastructure, which now primarily serves military needs.
China's officials have yet to respond to the announcement. Analysts warn that the measures, if enacted, could prompt retaliatory action from Beijing and introduce new volatility into global trade flows.