The move – stemming from a previous administration investigation – the United States and China are trapped in a trade war against President Donald Trump and may further exacerbate tensions.
“Ship and transport are crucial to the U.S. economic security and free commerce,” U.S. Trade Representative Jamieson Greer said in a statement announcing the new fees. Most of this will begin in mid-October.
Under the new rules, the per tonnage or per container fee will apply to U.S. sailings for every Chinese ship, not at every port, as some ports in the industry are concerned.
This fee can only be assessed up to five times a year and is exempt if the owner places an order for a ship built for the United States.
Dominant after World War II, the U.S. shipbuilding industry has gradually declined and now accounts for only 0.1% of global output. The industry is now dominated by Asia, with China building nearly half of its ships starting, accounting for more than 95% of citizens’ shipbuilding companies before South Korea and Japan.
The ships operated by China and Chinese ships will have separate costs, which will gradually increase in the following years.
For Chinese-built vessels, the fee starts at $18 per NT or $120 per container – meaning that vessels with 15,000 containers may see a high cost of $1.8 million.
U.S. groups representing about 30 industries expressed concern in March about the risks such fees could pose to the price of imported products.
One business surveyed by the groups expressed concern that the proposed fees, as well as tariffs from China and other countries, and tariffs on steel and aluminum imports, would “put great pressure on U.S. retailers.”
Starting from 180 days, all non-US-built cargo ships will also be subject to costs.
Washington has also introduced new fees for liquefied natural gas (LNG) carriers, although these fees have not taken effect within three years.
The fact sheet attached to the announcement said the fees would not cover “the Great Lakes or the Caribbean Sea transportation, transportation to and from U.S. territory, or the export of large quantities of goods on U.S. ships.”
In addition to the fees, Greer also announced tariffs on some cranes and Chinese freight equipment on board.
“The Trump administration’s actions will begin to reverse China’s dominance, respond to threats from the U.S. supply chain and signal demand to ships built by the U.S.,” Greer said.
