Trump Admin Exempts US Exporters From China-Built Ship Fees Amid Industry Pushback

The Donald Trump administration has announced exemptions for domestic exporters and vessel owners from port fees on China-built ships, aimed at bolstering the U.S. shipbuilding industry and countering China’s maritime influence

What Happened: According to a Reuters report, the Trump administration declared on Thursday that domestic exporters and vessel owners operating in the Great Lakes, the Caribbean, and U.S. territories will be exempt from port fees on China-built vessels.

The U.S. Trade Representative’s notice, published in the Federal Register, revised a February proposal that initially suggested fees up to $1.5 million per port call on China-built ships.

This proposal had raised concerns among global shipping executives about potential impacts on U.S. export prices and consumer costs.

Jamieson Greer, U.S. Trade Representative, stated, “Ships and shipping are vital to American economic security and the free flow of commerce.”

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Exemptions include ships ferrying goods between domestic ports, to Caribbean islands, and U.S. territories. U.S.-based carriers like Matson Inc. (NYSE:MATX) and Seaboard Marine will avoid the fees, as will empty ships arriving to load exports.

The levies will be implemented in 180 days, starting October 14, with fees based on net tonnage or container count.

Why It Matters: The decision to exempt domestic shippers from port fees is part of a broader strategy by the Trump administration to revitalize the U.S. shipbuilding industry.

As reported in March, Trump is preparing an executive order with 18 measures aimed at boosting the American maritime sector and countering China’s dominance.

This move comes amid escalating trade tensions between the U.S. and China. Recent reports indicate that China has significantly reduced its oil imports from the U.S. while increasing imports from Canada. Additionally, fears of delisting U.S.-listed Chinese stocks have emerged due to geopolitical frictions.

President Trump has emphasized the need for China to initiate negotiations, stating that the “ball is in China’s court”.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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