Trump's plan to impose port fees on Chinese ships threatens US maritime industry

From Yahoo Finance: 2025-03-24 10:30:00

President Trump’s plan to revitalize U.S. shipbuilding through fees on China-linked vessels faces backlash, as industry executives warn of negative impacts on domestic operators, seaports, exporters, and jobs. Proposed stacking fees could exceed $3 million per U.S. port call, threatening the survival of American-owned carriers and hurting key industries.

U.S. shipyards produce fewer than 10 ships a year compared to China’s 1,000, and industry executives warn that shipbuilders in Japan and Korea may struggle to meet demand. The proposed fees on Chinese-linked vessels could lead to job losses, higher costs for American exports and imports, and shortages for consumers.

Democratic lawmakers support the fees as a means to counter China’s dominance in the industry, urging USTR not to grant relief allowing firms to avoid fees by diverting cargo through Mexico or Canada. Vessel operators must meet specific criteria to avoid the fees, with a draft executive order potentially broadening the scope of vessels subject to fees.

Industry experts warn that vessel operators may resort to using larger ships and limiting calls to large U.S. ports to avoid fees, potentially causing supply chain disruptions and infrastructure strains. Shifting cargo to ports in Canada and Mexico could lead to clogged border crossings and increased wear and tear on infrastructure.

Read more: Trump’s port fees on Chinese ships threaten US maritime industry, say executives