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Trump Administration Proposes Fees on China-Linked Ships to Revive U.S. Shipbuilding

The draft executive order aims to counter China's dominance in global shipping but raises concerns over supply chain disruptions and increased costs.

Cargo ships full of shipping containers are seen at the port of Oakland, as trade tensions escalate over U.S. tariffs, in Oakland, California, U.S., March 6, 2025. REUTERS/Carlos Barria
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A cargo ship full of shipping containers is seen at the port of Oakland in Oakland, California, U.S., March 6, 2025. REUTERS/Carlos Barria/File Photo
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Overview

  • The proposed fees would apply to ships docking at U.S. ports if their fleet includes Chinese-built or Chinese-flagged vessels, according to a draft executive order.
  • Industry experts warn the plan could impose up to $30 billion in annual costs on U.S. consumers and double shipping costs for American exports.
  • Shipping companies may reduce U.S. port calls or reroute fleets to avoid fees, potentially causing congestion at major ports and sidelining smaller ones.
  • The draft order also calls on U.S. allies to adopt similar measures or face potential retaliation from the United States.
  • The Trump administration's goal is to revitalize the declining U.S. shipbuilding sector and weaken China's growing influence in maritime and logistics industries.