United States Eases Port Fees on China-Built Ships after Industry Backlash
The Trump administration shielded on Thursday domestic exporters and vessel owners servicing the Great Lakes, the Caribbean and US territories from port fees to be levied on China-built vessels, aiming to revive US shipbuilding.
The Federal Register notice posted by the US Trade Representative was watered down from a February proposal for fees on China-built ships of up to $1.5 million per port call that sent a chill through the global shipping industry.
Ocean shipping transports about 80% of global trade – from food and furniture to cement and coal. Industry executives feared virtually every cargo carrier could face steep, stacking fees that would make US export prices unattractive and foist annual import costs of $30 billion on American consumers.
“Ships and shipping are vital to American economic security and the free flow of commerce,” US Trade Representative Jamieson Greer said in a statement. “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.”
Still, the fees on Chinese-built ships add another irritant to swiftly rising trade tensions between the world’s two largest economies as President Donald Trump seeks to draw China into talks on his new tariffs of 145% on many of its goods.
