Trump Moves to Impose Levies on Chinese Ships in Escalating Trade Showdown

The Trump administration has unveiled a sweeping plan to impose docking fees on Chinese-built and Chinese-owned vessels calling at US ports, in a move that threatens to further escalate trade tensions between Washington and Beijing and reshape global shipping logistics.

Announced Thursday by the Office of the United States Trade Representative (USTR), the proposal will apply a fee of $50 per net ton of cargo on Chinese vessels starting six months from now. The fee, which will increase incrementally over the following three years, is part of a broader strategy to curb China’s dominance in global shipbuilding and redirect investment into the declining US commercial shipbuilding industry.

“This measure is designed to support American shipyards, reduce foreign dependency, and respond to unfair practices,” said a USTR spokesperson, referencing a months-long investigation launched under the so-called Section 301 petition into Chinese state-backed maritime expansion.

Fee Structure and Exemptions

Under the plan, fees will be levied per voyage rather than per port call—a revision from earlier proposals that suggested a flat charge of over $1 million per docking. The change aims to ease concerns from shipping operators about congestion and rerouting risks at major US ports.

Chinese-built ships will be charged based on net tonnage or per container, depending on the vessel type. Non-Chinese car carriers will also face fees of $150 per Car Equivalent Unit (CEU) if they are not built in the United States.

Ships that arrive empty to collect American bulk goods, such as grain or coal, will be exempt. So too are vessels calling on Caribbean islands and Great Lakes ports, and those whose operators have ordered new US-built ships, who can claim up to three years’ exemption.

A second phase, set to begin in three years, will place restrictions on foreign-built LNG carriers, with limitations increasing incrementally over 22 years. The US is currently the world’s largest exporter of liquefied natural gas.

Reaction From Beijing and Beyond

China responded sharply to the announcement. Foreign Ministry spokesperson Lin Jian condemned the move during a Friday press briefing in Beijing, warning that the fees would not only disrupt global supply chains but also “hurt US consumers and businesses” and fail to revive American shipbuilding.

“Measures such as imposing port fees and levying tariffs on cargo-handling facilities hurts the US itself as well as others,” said Lin.

US labor unions welcomed the plan, with representatives from the shipbuilding and steel industries expressing hope that the initiative would reverse the decades-long decline in domestic ship production. The move is expected to reroute billions in global cargo, pushing companies to reconsider shipping alliances and logistics costs.

Meanwhile, Asian shipping stocks outside China saw modest gains on Friday, while Chinese maritime firms slipped slightly in response to the announcement.

Domestic Political and Industry Concerns

While the proposal has strong backing from pro-manufacturing factions, it faces criticism from US importers, agricultural exporters, and trade groups.

Representative Angie Craig (D-Minnesota), ranking member of the House Agriculture Committee, said the fees would place undue burdens on American farmers who rely on affordable shipping options to access international markets.

At a hearing held in March, logistics providers and shipping executives warned that the plan could raise consumer prices, delay deliveries, and weaken competitiveness at US ports. Critics also argued that China’s dominance in shipbuilding, established over two decades, cannot be meaningfully undone through tariffs alone.

“This isn’t just about fees — it’s about the structure of the entire maritime economy,” said an industry executive who asked not to be named. “The US can’t out-tariff its way into global shipbuilding leadership.”

Strategic Calculations

Former President Trump, who returned to office in January, has long accused China of weaponizing its shipbuilding capacity, echoing concerns that the US is too reliant on Chinese vessels to move goods ranging from oil to electronics.

His administration sees the proposed docking fees as a strategic counterweight in an increasingly fragmented global trade order, where shipping has become a key battleground.

“Our dependence on China for maritime transportation must end,” Trump said in a statement earlier this week. “It’s time we build ships in America again.”

The levies are part of a broader resurgence in tariff-driven trade policy under Trump’s renewed leadership, which has also seen steep new duties placed on a wide range of Chinese goods and a push to re-onshore manufacturing in critical industries.

Key Points:

• Chinese-built or owned vessels will face $50/ton fees starting in six months.

• Exemptions include empty bulk carriers and ships with US-built vessel orders.

• A second phase will target LNG shipments and car carriers.

• China and US importers have condemned the plan as harmful and ineffective.

• Trump sees the move as a cornerstone in reviving US shipbuilding.