Washington Targets Chinese Shipbuilding Dominance With Escalating Port Charges

The United States Trade Representative (USTR) announced on April 18, 2025, that the Trump administration will impose new port fees on Chinese-built and Chinese-owned ships entering American ports.

The administration says these measures aim to counter China’s dominance in shipbuilding, address supply chain risks, and stimulate demand for US-built vessels.

After a 180-day grace period, the US will charge Chinese-owned or operated ships $50 per net ton of cargo per voyage, increasing by $30 each year to reach $140 by 2028.

Non-Chinese operators using Chinese-built ships will pay $18 per net ton or $120 per container, whichever is higher, with both figures rising over three years.

The policy caps charges at five voyages per vessel each year. Car carriers built outside the US will face a $150 per vehicle fee. Empty vessels arriving to collect US exports, such as grain or coal, will not pay these fees.

China currently builds nearly half of the world’s ships, while the US produces less than 0.1% of global output. The USTR’s year-long investigation concluded that China’s state-backed policies have sidelined foreign competitors and increased global dependence on Chinese maritime logistics.

The US hopes these fees will encourage shipowners to order American-built vessels, offering waivers for those who do. Industry groups warn that these fees, combined with tariffs as high as 245% on some Chinese goods, will increase costs for US businesses and consumers.

Early signs show cargoes originally bound for the US now divert to Europe, causing congestion in UK and EU ports and raising transatlantic shipping rates. The new policy marks a major escalation in the US-China trade conflict, with global supply chains already feeling the effects.

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