US to Impose Port Fees on Chinese Ships in Push to Boost Domestic Shipbuilding

The United States has announced a fresh round of trade measures aimed at Chinese shipping firms, introducing new port fees intended to support the struggling American shipbuilding industry and curb China’s dominance in global maritime trade.

Starting mid-October, Chinese shipowners and operators will face a $50-per-ton charge on cargo entering US ports. The tariff, unveiled by the Office of the United States Trade Representative (USTR), is expected to rise by $30 annually over the next three years.

The decision comes amid intensifying trade tensions between Washington and Beijing and follows the return of Donald Trump to the White House. The former and current president has reimposed and expanded a series of tariffs targeting Chinese industries since his inauguration in January.

According to US officials, the fees are designed to level the playing field and counter years of Chinese state-backed dominance in the shipbuilding sector. The USTR said China’s control over the industry has placed American companies, workers, and national interests at a disadvantage.

“China has largely achieved its dominance goals, severely disadvantaging US companies, workers, and the US economy,” the USTR stated.

Complex Fee Structure Announced

The new fee structure is tailored to different vessel types. Bulk carriers will be charged based on cargo weight, while container ships will incur charges per container. Non-US-built car carriers will be taxed at $150 per vehicle.

For ships built in China but not owned by Chinese firms, fees will begin at $18 per ton or $120 per container, also increasing annually. The charges are to be applied per voyage, with a cap of five times per year per ship.

Empty vessels arriving to pick up US exports, such as grain and coal, will be exempt. Ships operating between US domestic ports, including those serving US territories and Caribbean destinations, will also avoid the levy. Canadian and American vessels operating in the Great Lakes region are similarly excluded.

Initial drafts of the plan proposed far steeper penalties — including a flat $1.5 million fee per Chinese vessel per port call — but these have been shelved in favor of a more measured approach following pushback from trade groups and international partners.

Beijing Slams US Tariffs

In Beijing, the Chinese foreign ministry swiftly condemned the move, warning of consequences for both trade flows and consumer prices in the United States.

“These actions will increase costs for American consumers and fail to achieve their stated goal of reviving the US shipbuilding sector,” a ministry spokesperson said.

China has previously accused the US of using protectionist tactics under the guise of economic fairness. Analysts warn that the latest measures may further fray ties between the world’s two largest economies.

Trade Routes Shift Toward Europe

Industry observers are already noting significant disruptions in global shipping routes. Many cargoes previously bound for the US from China are being diverted to European ports instead, sparking logistical bottlenecks.

According to Marco Forgione, Director General of the UK-based Chartered Institute of Export & International Trade, Chinese imports to the UK surged by 15% in the first quarter of 2025, with the EU seeing a 12% uptick.

“We’ve seen a lot of diversion of ships from China, that were due to head to the US, now arriving in the UK and the EU,” Forgione said.

He added that this redirection has led to mounting congestion, especially at UK ports like Felixstowe and key European hubs such as Rotterdam and Barcelona.

Impact on Global Logistics

Sanne Manders, President of international logistics company Flexport, described the situation as a “clogging” of Europe’s ports, compounded by recent industrial action in the Netherlands, Germany, and Belgium.

“If more cargo is routed toward Europe to avoid US port charges, we could see even more congestion,” Manders said, although he noted that longer summer port hours may ease pressure slightly.

He also warned that the tariffs would ultimately be borne by American consumers, even as businesses begin searching for alternative markets and considering redesigns of their global supply chains.

Future Plans Target LNG Trade

The port fees mark the first phase of a broader, long-term strategy. The USTR confirmed that in three years, a second phase will prioritize US-built ships in the lucrative liquified natural gas (LNG) transport sector. That program will be rolled out incrementally over a 22-year period.

Trade experts say the move is part of Washington’s larger effort to reclaim strategic industries, including energy and infrastructure-related transport.

Market Reaction and Business Concerns

While the tariffs are framed as a way to restore industrial competitiveness, they have already drawn criticism from American businesses. Importers warn that rising costs will translate directly into higher prices for US households and could hurt competitiveness if supply chains are forced to reroute.

Meanwhile, China is expected to challenge the tariffs at the World Trade Organization (WTO), which previously warned that sweeping US tariffs under Trump’s administration led to a measurable decline in global trade volumes.

As the shipping industry braces for further disruption, experts say the real test will be whether the policy results in tangible gains for the US shipbuilding sector—or becomes another flashpoint in an escalating economic cold war.