U.S. Rethinks Port Fees Amid Maritime Dispute with China

The U.S. Trade Representative has revised a proposal to impose hefty port fees on China-built ships, opting for a more moderate approach. This change comes after significant pushback from the global shipping industry, which feared increased costs for American exporters and consumers.

The Trump administration has tempered its plan to levy substantial port fees on China-built vessels, following intense opposition from domestic and global shipping sectors. The initial proposal aimed at boosting U.S. shipbuilding by countering China's maritime prowess has been significantly softened.

Under the revised policy, unveiled in a Federal Register notice, affected ships will face levies once per voyage up to six times annually, easing the financial burden that concerned exporters. The modification exempts empty vessels and avoids fees based on fleet composition or prospective orders.

This decision aligns with the one-year anniversary of a USTR probe into China's shipping dominance, which found unfair competitive practices. Affected industry leaders cautioned that without adjustments, the fees could harm U.S. stakeholders, including the shipbuilders they are intended to support.

(With inputs from agencies.)