Trump administration to impose fees on Chinese ships

In a move likely to further escalate trade tensions between Washington and Beijing, the Trump administration has announced plans to impose fees on Chinese-built ships calling at US ports, in an effort to boost US shipbuilding.

In a filing late Thursday, the US outlined its plans to gradually impose high fees over several years on Chinese-owned or Chinese-built ships carrying cargo to US ports.

The fees are part of Washington’s effort to increase pressure on China, which it accuses of unfair trade practices, while also supporting domestic ship production. However, the move has raised concerns among US exporters.

US farmers have expressed worry that an overly punitive fee structure would harm their ability to export goods by forcing ships to visit fewer American ports to reduce the fees they would have to pay.

Donald Trump’s trade representative, Jamieson Greer, stated that the US would charge ship owners and operators from China $50 per net ton within 180 days, increasing by $30 per net ton over the following three years. Operators of Chinese-built ships would be charged a lower amount.

“Ships and maritime transport are vital to America’s economic security and the free flow of trade,” Greer said.

“The steps taken by the Trump administration will begin to reverse China’s dominance, address threats to the US supply chain, and send a demand signal for US-built ships,” he added.

A statement from Greer’s office also noted that the US would impose “limited restrictions” on foreign ships carrying liquefied natural gas, but these restrictions would not begin for three years and would increase over a 22-year period.

The fees will be based on the number of voyages to the US and will not apply to every port visited in the country on the same voyage, thus reducing the risk of ships skipping smaller ports and harming US exporters.

The US Trade Representative’s office added that empty ships arriving to export goods from the country would not be charged.