In a bold move underscoring its trade rivalry with China, the United States has announced a dramatic restructuring of port fee policies and trade incentives aimed at reviving its domestic shipbuilding industry. The decision follows a 2024 Section 301 investigation, prompted by labor union petitions, that found China’s state-supported shipbuilding sector was gaining unfair global dominance. With China now constructing more than 50% of the world’s merchant vessels and controlling a major share of container traffic, the U.S. is pushing back hard.
The plan, led by the Office of the U.S. Trade Representative, not only imposes fees on Chinese-built vessels entering U.S. ports but also introduces incentives for companies ordering U.S.-built replacements. The changes are positioned as a way to restore balance in global shipping, strengthen national supply chains, and diminish reliance on Chinese shipyards, but critics say the measures could damage trade flows and spike consumer costs.
Who’s Involved?
At the heart of the new regulations is U.S. Trade Representative Jamieson Greer, who declared:
“Ships and shipping are vital to American economic security and the free flow of commerce. The Trump administration’s actions will begin to reverse Chinese dominance, address threats to the U.S. supply chain, and send a demand signal for U.S.-built ships.”
Major industry players like Cosco Ocean Shipping Co., the world’s fourth-largest container operator, and the World Shipping Council have voiced concern. Trade bodies such as the American Apparel and Footwear Association also warn of grim repercussions.
Nate Herman, AAFA’s Senior VP of Policy, was sharply critical:
“With fees as high as $1.5 million per port call, these measures are driving up shipping costs, shrinking GDP, and reducing U.S. exports. When ocean carriers raise rates, American families will pay the price.”
Port Fee Structure & Exemptions
Under the restructured system, the fees will not be stacked across port calls, but instead levied per vessel rotation, meaning one charge per round trip. For Chinese-built ships, the fee is $0 for the first 180 days, then climbs incrementally from $18 per net ton to $33 by April 17, 2028. This fee may be charged up to five times annually per vessel.
However, the USTR has carved out exemptions to cushion the blow on key sectors. Vessels under 4,000 TEUs, under 55,000 deadweight tons, or carrying U.S. government cargo are excluded. So too are ships arriving empty to load exports, or operating on the Great Lakes or under short-sea service flags. U.S.-owned ships with 75% American control also qualify for waivers.
To encourage fleet transition, carriers are eligible for a fee remission up to three years if they purchase and deploy U.S.-built ships of equivalent size.
Incentives for LNG & Ro-Ro Vessel Construction
The plan goes further by introducing phase-based restrictions and incentives tied to liquefied natural gas and roll-on/roll-off vessels. For ro-ro car carriers, fees start at $0 for 180 days and then jump to $150 per car-equivalent unit, aimed at motivating domestic shipyards to enter this lucrative market.
For LNG ships, the second phase activates only after three years and builds gradually over 22 years, phasing out foreign vessel reliance through regulatory pressure rather than immediate bans. These efforts are designed to give U.S. shipbuilders time to expand capabilities and increase output.
Opposition from Industry Stakeholders
While the administration hails the measures as strategic, opposition is fierce. Critics say the cost burdens fall on importers, exporters, and ultimately consumers. Herman of AAFA warned of “growing product shortages” and job losses at smaller ports bypassed in favor of large consolidated hubs.
“We fully support strengthening the U.S. maritime industry,” he said, “but penalizing shippers for not using American-flagged or -built vessels, when they cost up to five times more and remain in limited supply, is counterproductive.”
The World Shipping Council echoed these concerns, stating the fees “raise prices for consumers and weaken U.S. trade while doing little to revive the domestic maritime sector.”
Shipping Patterns Likely to Shift
Analysts note that the restructuring could alter fleet logistics. Emily Stausboll, senior analyst at Xeneta, remarked:
“The fact fees will not be imposed on every port call is particularly important because it lowers the risk of congestion had carriers decided to cut the number of calls. Costs could still be very high for Chinese carriers and those operating Chinese-built vessels — particularly for the largest ships.”
Carriers may now seek to redeploy vessels across alliances to dodge peak fees and minimize exposure. That 180-day buffer is expected to be a key transition window for operational adjustments.
Upcoming Hearings & Tariff Expansions
Meanwhile, the USTR is soliciting public comment on a sweeping new wave of proposed tariffs. These include:
• 100% tariffs on Chinese-made ship-to-shore cranes
• 20%–100% tariffs on containers and chassis
• A hearing scheduled for May 19 to gather input from stakeholders
The tariffs are a continuation of broader trade policy that seeks to curtail China's influence across all segments of logistics and maritime infrastructure.
Key Takeaways:
• New U.S. port fees target Chinese-built ships, starting at $18 per net ton, rising to $33
• Exemptions include vessels under 4,000 TEUs, U.S.-flagged ships in short-sea service, and bulk carriers
• A 3-year remission is available if carriers purchase U.S.-built replacements
• Ro-ro car carriers face $150 per CEU after a 180-day grace period
• LNG shipping restrictions will phase in over 22 years to encourage U.S. shipbuilding
• Industry leaders warn of $1.5 million per-call costs, port congestion, & increased prices
• Public hearing on 100% crane tariffs & container duties scheduled for May 19
