2025-03134NoticeWallet

U.S. eyes tariffs as China eyes world shipbuilding throne

Published Date: 2/27/2025

Notice

Summary

The U.S. Trade Representative is looking into China's moves to take over the maritime, logistics, and shipbuilding industries. They want your thoughts on possible trade actions and will hold a public hearing in March 2025. This affects businesses in these sectors and could lead to new trade rules or tariffs soon.

Analyzed Economic Effects

6 provisions identified: 1 benefits, 4 costs, 1 mixed.

Up to $1,000,000 Fee on Chinese Vessels

If you operate a Chinese maritime transport company, USTR may charge a fee of up to $1,000,000 each time any vessel of that operator enters a U.S. port, or alternatively up to $1,000 per net ton of the vessel's capacity per entrance.

Large Fees for Chinese-Built Vessels and Fleet Mix

If you operate vessels built in China, USTR may charge up to $1,500,000 per Chinese-built vessel entrance to a U.S. port. Operators with fleets that are 50% or more Chinese-built could face fees up to $1,000,000 per entrance; >25%–<50% up to $750,000; and >0%–<25% up to $500,000. An additional fee of up to $1,000,000 may apply if Chinese-built vessels make up 25% or more of an operator's fleet.

Fees Linked to Future Orders from Chinese Shipyards

If you have vessel orders from Chinese shipyards or expect deliveries from Chinese yards over the next 24 months, operators with 50% or more of orders from China could be charged up to $1,000,000 per vessel entrance; >25%–<50% up to $750,000; >0%–<25% up to $500,000. A fee up to $1,000,000 per entrance may apply if 25% or more of an operator's orders over 24 months are from Chinese shipyards.

Refunds for Using U.S.-Built Vessels

Operators may receive refunds of additional fees of up to $1,000,000 per entry, on a calendar year basis, for entries into a U.S. port when providing international maritime transport services using a U.S.-built vessel.

Phased Rules Reserving Exports for U.S. Vessels

The rule would restrict a rising share of U.S. exports carried by vessel to U.S.-flagged vessels by U.S. operators: at least 1% as of the date of action; at least 3% two years after the date of action; at least 5% three years after (of which 3% must be on U.S.-flagged, U.S.-built vessels); and at least 15% seven years after (of which 5% must be on U.S.-flagged, U.S.-built vessels). Operators may be approved to use non-U.S.-built vessels only if they show at least 20% of the U.S. products they transport annually will move on U.S.-flagged, U.S.-built ships.

Limits or Bans on LOGINK Access and Use

USTR may pursue actions to reduce exposure to LOGINK or similar platforms, including recommending investigations of alleged anticompetitive practices, restricting LOGINK access to U.S. shipping data, or banning (or continuing to ban) terminals at U.S. ports from using LOGINK software.

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Key Dates

Published Date
2/27/2025

Department and Agencies

Department
Independent Agency
Agency
Trade Representative, Office of United States
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