The U.S. Trade Representative (USTR) has announced updated measures aimed at countering China’s dominance in global shipbuilding and maritime logistics. Taken under Section 301 of the Trade Act, these actions are intended to strengthen U.S. shipbuilding and reduce dependence on Chinese maritime infrastructure. The revisions follow extensive public input, including nearly 600 written comments and testimony from almost 60 participants at a public hearing held last month in response to USTR’s earlier proposal.
Key measures of the revised actions:
- Service Fees on Chinese-Linked Vessels
- Chinese-Owned and Operated Ships: Starting October 14, 2025, a phased fee beginning at $50 per net ton will be imposed, increasing annually to $140 by 2028 to be assessed per U.S. voyage (not per port), up to 5x/year.
- Chinese-Built Vessels (Non-Chinese Operators): Fees will apply based on net tonnage or $120–$250 per container, whichever is higher. Exemptions exist for certain vessel types and U.S.-owned ships.
- Foreign-Built Vehicle Carriers: A fee of $150 per Car Equivalent Unit (CEU) will be introduced beginning October 14, 2025, with potential suspensions if operators invest in U.S.-built vessels.
- LNG Export Vessel Requirements
- From 2028, a portion of U.S. liquefied natural gas (LNG) exports must be transported on U.S.-built and operated vessels, gradually increasing over 22 years.
- Proposed Tariffs on Chinese Maritime Equipment
- The USTR proposes tariffs up to 100% on Chinese-made ship-to-shore cranes and other cargo handling equipment.
- Fee Suspension Option
- If a vessel operator orders and takes delivery of a U.S.-built vessel of equivalent size, fees can be suspended for up to 3 years.
Public comments are invited until May 19, 2025.
- Written comments: by May 19, 2025
- Hearing requests: by May 8, 2025
- Portal: https://comments.ustr.gov/s/
Implications for importers and exports include, but are not limited to, potential increase in shipping costs due to new fees on Chinese-linked vessels and long-term shifts encouraging the use of U.S.-built vessels may affect logistics planning.
Mallory Alexander is committed to guiding clients through these regulatory changes. For questions regarding your shipments or supply chain strategy, please contact your Mallory Alexander representative.