Overview

• The U.S. Trade Representative is holding public hearings on proposed fees of up to $3 million per port call for Chinese-built ships, aiming to counter China's dominance in global shipbuilding.
• Industry leaders and global shipping bodies criticize the fees as disruptive, warning they could harm U.S. shipping companies and exporters while failing to rebuild domestic shipbuilding quickly enough.
• Critics highlight potential supply chain disruptions similar to those seen during the pandemic, with agriculture and coal exporters already reporting booking difficulties due to uncertainty over the policy.
• Supporters, including U.S. steelworker unions and steel producers, argue the fees will bolster the struggling U.S. shipbuilding sector, which currently produces fewer than 10 ships annually.
• China's shipbuilding industry, which benefits from state subsidies, produces over 1,000 ships annually and controls more than 50% of the global market, underscoring the scale of the challenge for U.S. policymakers.