U.S. Trade Adjustments Shield Domestic Shipping from Hefty Port Fees

The U.S. Trade Representative is set to exempt U.S.-owned vessels from fees imposed on China-linked ships. This decision follows industry backlash over a proposal that could increase costs significantly, impacting U.S. exports and imports. The plan aims to support domestic shipbuilding and counter China's maritime influence.

The U.S. Trade Representative's office announced on Thursday an exemption for U.S.-owned and registered ships from proposed port fees targeting China-associated vessels, as part of President Trump's strategy to boost American shipbuilding and counteract China's control of international waterways, according to two industry insiders speaking with Reuters.

The initial proposal by the USTR included port fees up to $1.5 million per call for China-built ships, causing concern within the global shipping sector. This policy could lead to increased export costs and billions in import expenses for U.S. consumers. The fees would apply per trip, with implementation set for six months from now.

This decision aligns with the one-year mark of USTR's investigation into China's maritime activities, revealing unfair practices. The USTR faced opposition from the global maritime community, including domestic operators and U.S. exporters. To mitigate economic harm, the agency's latest stance includes non-cumulative fees to soften impacts, as reported by Reuters.

(With inputs from agencies.)