The US Trade Representative announced US port fees last week on vessel owners and operators of China and operators of Chinese-built ships based on net tonnage. The World Shipping Council (WSC) has now voiced serious concerns, cautioning that the measures could undermine American trade, hurt US producers, and weaken efforts to strengthen the nation’s maritime industry.
The US Trade Representative (USTR) calls the move a ‘targeted action to restore American shipbuilding and address China’s unreasonable acts, policies, and practices to dominate the maritime, logistics, and shipbuilding sectors’.
‘Ships and shipping are vital to American economic security and the free flow of commerce,’ said USTR Ambassador Greer. ‘The Trump administration’s actions will begin to reverse Chinese dominance, address threats to the US supply chain, and send a demand signal for US-built ships.’
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Port fees
The port fees will be implemented in two phases. For the first 180 days the applicable fees will be set at USD 0.
In the first phase, after 180 days:
- Fees will be implented on vessel owners and operators of China based on net tonnage per US voyage, increasing incrementally over the following years.
- Fees will be implemented on operators of Chinese-built ships based on net tonnage or containers, increasing incrementally over the following years.
- To incentivise US-built car carrier vessels, fees on foreign-built car carrier vessels based on their capacity.
The second phase actions will not take place for three years, but target LNG vessels. The USTR writes: ‘To incentivise US-built liquified natural gas (LNG) vessels, limited restrictions on transporting LNG via foreign vessels. These restrictions will increase incrementally over 22 years.’
In addition, USTR is also seeking public comments on proposed tariffs on ship-to-shore cranes and other cargo handling equipment, in line with the President’s Maritime Executive Order.
Also read: ‘US tariffs to shake up trade, no rate hike expected’
WSC concerned
The WSC sees revitalising the US maritime sector as an important goal and welcomes the vision outlined in the President’s Executive Order, which proposes targeted initiatives to strengthen US shipbuilding, ports, and supply chain resilience. However, according to the organisation, the fee regime is ‘a step in the wrong direction’.
‘It will raise prices for consumers, weaken US trade and do little to revitalise the US maritime industry,’ states Joe Kramek, President and CEO of the WSC.
The WSC outlines several key concerns:
- Retroactive port fees: Applying fees to vessels that are already on the water offers no support for US shipbuilding and, instead, risks harming American exporters — particularly farmers — at a time when global trade is facing significant strain. These backward-looking penalties disrupt long-term investment planning, introducing new costs and unpredictability for American businesses and consumers.
- Fees calculated on NT: Structuring fees based on ship size — net tonnage (NT) — disproportionately penalises larger, more efficient vessels that deliver essential goods, including components used in US production lines. Nearly half of all liner shipping imports to the US are used directly in domestic production processes. Increasing the cost of these shipments will reverberate through the supply chain, raising production costs for American businesses and, ultimately, for consumers. It will also penalise US ports, who have made significant investments to expand their capacity to attract and handle the largest container ships serving the trade.
- Fees on car carriers: Additionally, the USTR actions this week included a new and previously unannounced fee based on Car Equivalent Unit (CEU) capacity for almost every vehicle carrier in the world. This arbitrary action, targeting all foreign-built vessels, will further slow US economic growth and raise automobile prices for American consumers, while doing little to encourage US maritime investment.
- Legal and strategic concerns: WSC also flagged significant legal concerns, noting that the proposed fees appear to extend beyond the authority granted under US trade law.
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Call for constructive solutions
The WSC is urging the US administration to reconsider this counterproductive measure. The WSC reaffirmed its commitment to work with the US government and industry stakeholders on solutions that strengthen the US maritime sector. WSC: ‘Constructive pathways — such as targeted investment incentives, infrastructure improvements, and streamlined regulatory processes — can deliver lasting benefits without disrupting US trade or raising costs for American producers and consumers.’
‘It is also important to recognize that the US shipbuilding sector already faces significant constraints, including a backlog of military orders and ongoing labour shortages. Similarly, a shortage of trained and certified US mariners limits the potential to expand US-flag shipping, even if the regulatory environment was improved,’ WSC adds.
Kramek concludes: ‘We urge policymakers to pursue strategies that encourage growth, strengthen supply chain resilience, and avoid actions that risk harming American exporters, producers, and consumers at a time when global trade is already under pressure.’
