US Trade Representative Proposals

Section 301 Investigation of China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance

World Shipping Council’s statement on the USTR proposals

"International container and vehicle carriers operate U.S. flag fleets, are building new ships in U.S. shipyards and contribute 75% of the vessels enrolled in the U.S. Maritime Security Program. We welcome the opportunity to work with the administration on ways to revitalize the U.S. maritime industry.

WSC urges the USTR to reconsider its proposed fees on Chinese-built vessels, as retroactive fees on vessels already serving the trade or being built will do nothing to curb the behavior USTR has found actionable, but will do significant harm to the U.S. economy.

The USTR’s proposed port fees could add $600–$800 USD per container—which would double the cost of shipping U.S. exports and hit American farmers particularly hard.

Container vessels servicing the U.S. typically call at 3-4 U.S. ports on each trip. Per port call fees of $1-3.5M would add millions in costs to each voyage, resulting in fewer U.S. port calls, especially to small and medium sized ports. Port labor, trucking, rail, warehousing, and other jobs that support these ports would be significantly impacted, as would businesses who rely on proximity to these ports.

American farmers, retailers and mineral exporters are protesting against these proposals, arguing that multimillion dollar per-port fees will have detrimental impacts on their business and could halt some American exports entirely. This is even more alarming given that the proposed fees would apply retroactively to vessels already built and serving the U.S. trade, or under construction, and do nothing to reinvigorate U.S. shipbuilding.

The WSC urges the administration to explore strategies that bolster U.S. shipbuilding and maritime sectors without disrupting the broader economy. Collaborative efforts to enhance infrastructure, incentivize innovation, and streamline regulatory processes could achieve the desired objectives without the adverse consequences associated with the current USTR proposals.

We welcome the opportunity to work with the White House, UTSR, Maritime Agencies and Congress on constructive policies and legislation that will work to revitalize the U.S. maritime industry while keeping supply chains efficient and trade flowing. “

- Joe Kramek, World Shipping Council President & CEO

What is the USTR proposing?

The Office of the United States Trade Representative (USTR) has now proposed multiple recommendations, including a per port entry fee of up to $1.5M on Chinese-built vessels, and up to $1M per port entry fee on any vessel (Chinese built, or non-Chinese-built) to an operator that has a Chinese-built vessel in their fleet or orderbook. USTR also proposes a restriction on the ocean transportation of all U.S. exports, specifically the proposal would limit all US exports to a very small number of U.S.-flag/U.S.-built vessels.

Why is USTR making these proposals?

A Section 301 investigation by the USTR was initiated in April 2024 following a petition by five unions. The investigation concluded that China's state subsidies and policies have enabled it to capture over 50% of the global shipbuilding market. Read WSC’s comments on the investigation.

Key impacts:

  • Fees of $1M-$3.5M USD per port call.

  • The fees will result in fewer port calls; particularly to medium and small ports. (A container vessel servicing the U.S. typically stops at 3-4 U.S. ports on each trip.)

  • Fees could add $600–$800 USD per container (TEU) for goods moving in and out of the U.S., hitting farmers particularly hard.

  • 98% of all U.S. port calls could be subject to fees under these proposals because these fees apply not only to Chinese-built ships but also to any operator with a Chinese-built vessel in its fleet or on order.

  • These fees amount to an additional tax on American consumers of up to $30B USD annually.

  • The cost to ship U.S. exports could double.

  • $1 trillion in imports could be impacted.

  • A majority of proposed fees would apply to existing vessels or vessels under construction, which would not disincentivize current shipbuilding practices.

How the proposed USTR port fees would impact transportation costs

  • Asia - U.S. Gulf coast

  • Asia - U.S. West coast

  • Europe - U.S. East coast

  • Mediterranean - U.S. East Coast

  • Non-Chinese operator Asia - U.S. West Coast

What American Farmers and Businesses are Saying

“This Section 301 Proposed Rule would end US agriculture and forest products ocean shipping exports/access to global markets.”

“The transport cost increase would quickly render US ag unaffordable, uncompetitive, and because there is ample substitute supply from other countries, it would end US ag sales to foreign markets.”

— Agricultural Transport Coalition

“The proposed action and related fees risk rendering the export of U.S. ethane gas uneconomical, thus threatening an activity and sector that is key to the Trump Administration's bold energy agenda.”

— INEOS

“We are extremely concerned that if this proposal goes into effect, U.S. soybeans will be effectively shut out from our global export markets.”

— American Soybean Association

““This action will slam the brakes on oil and gas production as the fees are onerous and make the U.S. immediately uncompetitive.”

— Enterprise Products Partners L.P.

“Could bring the industry to a standstill—threatening U.S. manufacturing, energy production, and national security.”

— National Mining Association

“The fees will result in cost increases of hundreds of dollars per container for cargo owners at a time when they continue to face challenges and pressures in their supply chains.”

— National Retail Federation