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The Trump administration is set to implement fees on Chinese-built ships docking in US ports in a bid to boost US shipbuilding, potentially escalating trade tensions between Washington and Beijing.
According to a filing submitted late on Thursday, the US plans to gradually introduce significant charges on Chinese owned or built ships transporting cargo to US ports over the course of several years.
These fees are part of an initiative to increase pressure on China for what the US perceives as unfair trade practices, while simultaneously promoting the domestic production of ships. However, the move has raised concerns among US exporters.
Agricultural producers in the US are worried that an overly punitive fee structure could hinder their export capabilities by leading ships to bypass American ports to minimize fees.
Jamieson Greer, the trade representative for Donald Trump, stated that the US will impose fees of $50 per net ton on vessel owners and operators from China starting in 180 days, with incremental increases over the following three years. Operators of Chinese-built ships will face lower charges.
Greer emphasized the importance of ships and shipping to American economic security, highlighting that the actions taken by the Trump administration aim to reduce Chinese dominance, address supply chain threats, and stimulate demand for US-built ships.
In response, China’s foreign ministry cautioned the US that measures such as port fees could elevate global shipping costs, disrupt supply chains, and contribute to inflation in the US, impacting American consumers and businesses.
The ministry contended that the US shipbuilding industry will not be revitalized by these actions and asserted that China will take necessary measures to safeguard its interests.
Greer’s office also revealed that the US will impose “limited restrictions” on foreign vessels carrying liquefied natural gas, with these restrictions gradually increasing over a 22-year period, based on the number of voyages to the US.
The fees will not be applied for each port visited within the US during the same trip, reducing the likelihood of ships bypassing smaller ports and negatively impacting US exporters.
The US trade representative’s office clarified that empty ships arriving to export goods from the country will not incur charges.
Additional reporting by Nian Liu in Beijing