Representational image (AP file photo)
The Trump administration is reconsidering its plan to impose steep port fees on China-linked ships after strong pushback from businesses and shipping groups, reported News Week.
The proposal, first introduced by the office of the US Trade Representative (USTR) in February, was part of a broader strategy to reduce reliance on Chinese-built vessels. But critics warn it could damage the US economy more than it helps.
The proposed fee—$3 million per port call—would apply to ships built in China or operated by Chinese companies. During public hearings, several trade representatives said this could disrupt supply chains and inflate costs, since many global vessels have links to China. They also pointed out that replacing these ships would take years, as US shipbuilding has declined sharply—from 70 ships a year in 1975 to just five today.
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Sources told Reuters that the administration is now looking at alternatives. These include delaying the rollout and using a variable fee system, such as charging based on ship size or the percentage of Chinese-built vessels in a fleet.
Trade Representative Jamieson Greer said on Tuesday that the agency is carefully reviewing public feedback. “We want to boost shipbuilding at home without hurting our own economy,” he told the Senate Finance Committee.
This comes as the US plans new
tariffs on Chinese imports
, starting Wednesday. In response, China has announced its own 34% tariff on US goods, escalating trade tensions between the two countries.