The Trump administration, building upon a policy initiated during the Biden administration, has officially introduced fees on Chinese-built vessels docking at United States ports. This significant step follows a USTR (United States Trade Representative) investigation which concluded that China’s shipbuilding practices are unreasonable, place an undue burden on US commerce, and contribute to the erosion of domestic shipping industries.

The policy, made public on April 17, 2025, is aimed at reversing China's dominance in global shipping—a sector where Chinese-built ships currently account for 98% of the global ocean fleet. The new fees will be rolled out in stages, starting at zero for the first 180 days, before increasing incrementally through 2028.

Jamieson Greer, U.S. Trade Representative, emphasized the policy’s intent: “The actions will begin to reverse Chinese dominance, address threats to the U.S. supply chain, and send a demand signal for U.S.-built ships.”

Phased Fee Structure

The policy distinguishes between two primary types of vessels: Chinese-owned vessels and foreign-owned vessels using Chinese-built ships. Both categories face different service fee structures, calculated on net tonnage and container units.

Fees on Chinese-Owned Ships:

• From October 14, 2025: $50 per net ton

• From April 17, 2026: $80 per net ton

• From April 17, 2027: $110 per net ton

• From April 17, 2028: $140 per net ton

These fees are applicable up to five times per year per vessel. Initially, no fee will be charged until October 2025.

Fees on Foreign-Owned Vessels with Chinese-Built Ships:

• From October 14, 2025: $18 per net ton (~$120 per container)

• From April 17, 2026: $23 per net ton (~$153 per container)

• From April 17, 2027: $28 per net ton (~$195 per container)

• From April 17, 2028: $33 per net ton (~$250 per container)

Fee Waivers for US Shipbuilding Orders

To encourage domestic shipbuilding, the policy allows for fee waivers. Vessel owners can apply for remission of the fees if they:

• Show proof of a U.S. shipbuilding order, and

• Ensure the tonnage capacity of the new US-built vessel is equal to or greater than the Chinese-built one.

However, if delivery isn’t completed within three years, the full fee becomes due immediately.

This measure aims to revive the declining US shipbuilding sector, by making it more attractive for fleet operators to invest domestically rather than relying on cheaper Chinese alternatives.

Public Response and Modifications

The initial policy proposal was modified after public hearings held in March 2025, which featured over 300 trade groups and stakeholders. Concerns were raised that overly harsh economic penalties could destabilize global shipping, given the widespread use of Chinese-built ships.

Thus, the final version was softened:

• Fees are per voyage, not per port call

• Exemptions include:

  • Great Lakes and Caribbean routes

  • US territories

  • Empty ships

  • Bulk goods like coal and grain

These adjustments reflect an attempt to balance trade enforcement with economic pragmatism, ensuring that essential supply chains remain uninterrupted.

Future Policy Directions

A second phase of the policy—set to begin in 2028—will target LNG (Liquefied Natural Gas) carriers. Over the next 22 years, restrictions on LNG transport via foreign ships will be incrementally increased, favoring U.S. capacity in critical energy transport.

In parallel, car carrier vessels will be charged $150 per Car Equivalent Unit (CEU) starting 180 days after implementation.

This long-term vision aligns with a national strategy to reduce foreign dependency and increase economic self-sufficiency in strategic maritime sectors.

Key Takeaways

• The new fee structure reflects a clear shift in US maritime policy, with a focus on economic sovereignty.

• By targeting vessels rather than operators, the policy addresses China’s dominance in shipbuilding without outright banning any specific fleet.

• The fee remission program adds a strong incentive for shipping companies to invest in the US shipbuilding industry, potentially revitalizing a sector in decline for decades.

Industry Impact

The global shipping industry, already under pressure due to high inflation, freight volatility, and geopolitical risk, will now face additional costs for operating Chinese-built ships in the US. This may lead to:

• Higher freight rates

• Fleet restructuring

• Acceleration in US shipbuilding orders

Major carriers such as Cosco, Maersk, and others with large numbers of Chinese-made ships in their fleets will need to reevaluate route planning and capital investment strategies.

Conclusion

The United States’ move to charge fees on Chinese-built vessels signals a paradigm shift in global maritime trade dynamics. It sends a message not only to China but also to global shipping companies that the US is serious about rebuilding its domestic shipbuilding capabilities and protecting national economic interests.

As the implementation unfolds, stakeholders across ports, shipping firms, logistics providers, and manufacturers will be watching closely, evaluating how to navigate the changes and whether this bold move by the US can reshape the future of global trade routes.

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