U.S. Plans to Levy Port Fees on China-Linked Ships

By Lisa Baertlein, Andrea Shalal, and Jonathan Saul

LOS ANGELES (Reuters) – The U.S. Trade Office will announce its plan for imposing port fees on China-linked ships this week, part of President Donald Trump’s efforts to revive domestic shipbuilding and counter China’s maritime dominance.

• The proposed fees on China-built ships could amount to $1.5 million per U.S. port call, with few exemptions. This measure would make U.S. export prices less competitive and impose billions in extra costs on American consumers.

• An official announcement is expected as early as April 17, marking one year since the USTR began investigating China’s maritime activities, which its agency concluded involves unfair practices in global shipping.

• U.S. Trade Representative Jamieson Greer indicated last week that not all aspects of the original fee proposal would be implemented, which included various punitive options against China.

• Jamieson mentioned that more details would be unveiled in mid-April, and industry officials had anticipated a resolution aligned with the one-year anniversary of the USTR investigation.

• Heavy backlash from the global maritime sector, including U.S. exporters, importers, and port operators, has led to revisions of the original plan. Concerned groups argue that these fees could drastically increase the cost of essential goods.

• During a recent hearing, Greer noted that the fees might not be cumulative, aiming to lessen economic impacts, while other reports indicated that the administration is considering ways to ease the burden following industry feedback.

• Implementation could potentially be deferred until November due to varying stakeholder feedback.

• U.S. taxpayers and workers could feel adverse effects from the port fee since the impending fees would apply to nearly the entire global shipping fleet.

• Smaller ports fear that imposing fees per port visit could lead to reduced calls to these ports, bottlenecking larger ports and jeopardizing investments made in infrastructure improvements.

• Scott Chadwick, CEO of the Port of San Diego, expressed that the current fee structure could disrupt supply chains and inadvertently harm U.S. ports.

• The Shipbuilders Council of America supports Trump’s efforts to enhance the U.S. shipbuilding industry, warning that the proposed fees could undermine years of federal investments in ports.

• Infrastructure and systems essential for maintaining goods movement are at stake, emphasizing that expansion cannot happen overnight through new rail lines or workforce relocation.

– Port authorities, labor unions, and industry executives continue to engage in discussions with USTR officials to voice their concerns and seek solutions.