The Trump administration has announced a series of fees targeting Chinese-built vessels docking at U.S. ports, aimed at addressing concerns over China’s dominance in the shipbuilding industry. These fees will be phased in over a number of years, with the first one slated to go into effect on April 17, 2025.
Those new regulations are the result of a U.S. Trade Representative (USTR) investigation. This investigation concluded that China’s policies are burdensome, unreasonable and discriminatory to U.S. commerce. As a result, the U.S. government aims to level the playing field for American shipping companies and protect their economic interests.
Beginning on April 17, 2025, a fee of $0 per net ton will apply to each vessel arriving at the port. Vessels that must be built in China will be subject to significant additional costs. Beyond 180 days, $150.00 CI PER CEU. USTR’s warning that, if unchecked, Chinese-made vessels will soon make up 98% of commercial ships on the world’s oceans. This alarming trend is precisely why the regulatory action we are demanding is so urgently needed.
In the following years, fees for Chinese-built vessels will increase incrementally. On October 14, 2025, the fee will increase to $18 per net ton (~$120 per container). After the third year, prices will escalate to $23 per net ton ($153 per TEU) on April 17, 2026. By April 17, 2027, they increase further to $28 per net ton, which works out to $195 per container. Eventually, the fee will climb to $33 per net ton ($250 per twenty-foot equivalent unit) on April 17, 2028.
The new fee structure allows ocean carriers to provide proof of ordering a U.S.-built vessel to suspend fees or restrictions on an equivalent non-U.S.-built vessel for up to three years. This complex provision is designed to spur more investment in domestic shipbuilding, but it’s meant to provide operational flexibility for commercial shipping companies.
The USTR’s triggered investigation found an equally critical issue. China’s predatory industrial policy shipbuilding sector has had a devastating impact on U.S. companies and workers. Under the original proposal, no more than a $1 million service fee would be established for each of the Chinese-owned operators such as Cosco. The final fees were changed to permit a more phased-in approach.
U.S. Trade Representative Jamieson Greer emphasized the critical role of shipping in ensuring economic security:
“Ships and shipping are vital to American economic security and the free flow of commerce.” – U.S. Trade Representative Jamieson Greer
Under the Biden administration, the U.S. government initiated a Section 301 investigation into China’s shipbuilding dominance. They understood that China represents an equally staggering 75% to 80% of non-military ship production worldwide. This heavy-handed inquiry is a clear sign of escalating protectionist tensions between the two countries over trade practices and economic competition.
The adoption of such fees would be a sea change in U.S. maritime policy. This action is part of a broader plan to deal with foreign competition that threatens to enforce or injure U.S.
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