Turbulent Waters: China's New Port Fees Escalate Trade Tensions with U.S.

China has imposed new port fees on U.S.-linked vessels in retaliation to U.S. port fees on Chinese ships. The move further strains trade relations between China and the U.S., impacting several shipping companies and potentially complicating global trade during a period of economic pressure.

In a significant escalation of trade tensions, China announced it would levy new port fees on vessels that are owned, operated, built, or flagged by the U.S., starting Tuesday. This decision is a direct counteraction to the U.S. imposing similar fees on China-linked shipping vessels, as per China's transport ministry.

The announcement coincides with U.S. President Donald Trump's declaration of a possible hike in tariffs on Chinese goods, exacerbating already strained trade relations. The Chinese fees aim to target not only directly U.S.-linked vessels but also those with significant American investment, potentially affecting numerous shipping giants, analysts revealed.

This tit-for-tat measure has left companies including Matson, CMA-CGM's American President Lines, and Seaspan bracing for impact. Meanwhile, the U.S. fees are intended as part of a strategy to revive its shipbuilding industry and diminish China's influence in global shipping, marking another chapter in the ongoing trade conflict.

(With inputs from agencies.)