United States eases port fees on China-built ships after industry backlash

In a strategic move to revive American shipbuilding, the Trump administration has announced exemptions from new port fees for US-based exporters and vessel owners operating in the Great Lakes, the Caribbean, and US territories. The fees, originally proposed to reach $1.5 million per port call for China-built vessels, have been significantly scaled back following industry backlash.

According to a notice from the US Trade Representative (USTR), the revised policy now exempts vessels engaged in domestic shipping, including trade with US territories and Caribbean nations. Companies like Matson and Seaboard Marine, as well as Canadian vessels serving Great Lakes ports, are among those who will avoid the levies.

The softened rules address widespread concerns from global shipping operators, who warned the original plan would disrupt trade and increase costs by up to $30 billion annually for US importers. Instead, the USTR has introduced a tiered fee system based on net tonnage or per-container charges, gradually increasing over the next three years.

Chinese-built, Chinese-owned ships: $50 per net ton, rising $30 annually.

Chinese-built, foreign-owned ships: $18 per net ton, rising $5 annually.

Alternate container fee: Starts at $120 per container, rising to $250 over three years.

Some exemptions apply to empty vessels arriving for US exports, and roll-on/roll-off auto carriers can qualify for refunds if they invest in US-built ships. LNG carriers must meet phased US-build shipping requirements, increasing from 1% in four years to 15% by 2047.

The new rules, effective October 14, come a year after the USTR launched an investigation into China’s dominance in global shipping, concluding that unfair practices have undermined the US maritime sector.

While unions applauded the move as a step toward revitalizing US shipbuilding and creating high-wage jobs, trade groups such as the American Apparel & Footwear Association raised concerns over rising costs for consumers.

Additionally, the USTR plans to impose 100% tariffs on Chinese-made port cranes and related equipment, with a hearing scheduled for May 19. However, it remains unclear whether the revenue from these fees and tariffs will directly support US shipbuilding initiatives.