USTR Lays Out Plan to Levy Fees on Foreign-Built Vessels Docking at US Ports
The Office of the U.S. Trade Representative is planning a phased-in approach to assessing fees on foreign-built vessels calling at U.S. ports, according to an April 17 announcement unveiling the results of its year-long Section 301 investigation.
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It will also seek comments and hold a public hearing on whether it should levy tariffs upon containers and port-handling equipment produced by Chinese companies.
USTR said the phased-in approach would "balance the need for action and the importance of limiting disruption for U.S. exporters." Some trade groups had argued that imposing fees on most ships bringing imports to U.S. ports will drive up prices, increase port congestion and devastate the business of smaller ports (see 2503240003).
USTR had been charged to "restore American shipbuilding and address China’s unreasonable acts, policies, and practices to dominate the maritime, logistics, and shipbuilding sectors," according to an April 17 release. The yearlong investigation, which started in April 2024 (see 2404170029), was requested by five labor unions and predates the current administration.
For the first 180 days applicable fees will be set at $0.
After 180 days, according to a pre-publication version of USTR's notice of action, USTR expects to levy fees on vessel owners and operators of China, based on net tonnage per U.S. voyage. It also will levy fees on operators of Chinese-built ships based on net tonnage of containers. These fees will increase on April 17 for the next three subsequent years: 2026, 2027 and 2028.
This first phase also will seek to levy fees on foreign-built car carrier vessels based on their capacity "to incentivize U.S.-built car carrier vessels."
The second phase, which will take place three years from now, starting in 2028, will place "limited" restrictions on foreign vessels transporting liquefied natural gas. These restrictions will increase incrementally over 22 years, USTR said.
USTR noted that the fees aren't cumulative.
"Ships and shipping are vital to American economic security and the free flow of commerce," USTR Ambassador Jamieson Greer said in the release. "The Trump administration’s actions will begin to reverse Chinese dominance, address threats to the U.S. supply chain, and send a demand signal for U.S.-built ships."
In addition to laying out its plans on levying fees upon foreign-built vessels calling at U.S. ports, USTR is also mulling assessing tariffs on Chinese-made containers and port equipment. These would be tariffs on containers, as filled under Harmonized Tariff Schedule heading 8609.00.00; chassis, 8716.39.0090; chassis parts, 8716.90.30 and 8716.90.50; and ship-to-shore gantry cranes, 8426.19.00.
The proposed tariff rate is between 20% and 100% for containers, chassis and chassis parts, and 100% for ship-to-shore gantry cranes. As proposed, the tariffs would apply not only to goods of Chinese origin, but also goods made by companies owned or controlled by Chinese people.
USTR opened its comment period on these proposed tariffs on April 17. It plans to hold a hearing on May 19 on these proposed tariffs. Post-hearing rebuttal comments will be accepted through seven days after the last hearing day, if the hearings span multiple days.