The Office of the United States Trade Representative (USTR) has launched significant measures in response to its Section 301 investigation concerning China’s aggressive pursuit of dominance in the maritime, logistics, and shipbuilding sectors.
This decision aims to address China’s unfair trade practices that have disadvantaged U.S. companies and workers, hindering their ability to compete in crucial industries.
The investigation revealed that China has been employing a variety of non-market methods to achieve its goals, ultimately shutting U.S. companies out of significant global shipping markets.
Given that ships and shipping are integral to the U.S. economic landscape, transporting over eight percent of goods globally, the stakes are high.
According to reports, vessels account for 61 percent of U.S. international merchandise trade with Asia and 45 percent with Europe, highlighting the necessity for a robust U.S. maritime industry.
The USTR’s actions are not only aimed at reducing reliance on Chinese shipping but also at stimulating demand for U.S.-crafted ships.
The decision comes after a thorough review process, including a two-day public hearing and nearly 600 comments from the public, as well as consultations with other government experts.
Prominent voices, including seven Members of Congress, contributed to the discussion, emphasizing the urgency of addressing these trade discrepancies.
The new measures are structured in two phases, allowing U.S. businesses time to adapt while still targeting the core issues of Chinese dominance.
During the initial 180 days, all relevant fees will be set to zero, providing a temporary reprieve for businesses engaged in U.S.-China maritime operations.
Post the initial phase, specific fees will be incrementally imposed on various vessel owners and operators based in China on a per U.S. voyage basis.
For instance, fees on vessel operators by net tonnage will commence at $50/NT and will rise by $30/NT each subsequent year over a three-year period.
Chinese-built ships will face distinct fees, starting at $18/NT or $120 per container.
These fees will also follow a structured incremental increase, enhancing the financial burden on Chinese-built shipping operations.
In an effort to promote U.S.-made car carrier vessels, foreign-built car carriers will incur fees based on their capacity, beginning at $150 per Car Equivalent Unit (CEU).
The second phase, which will initiate after three years, includes restrictions on foreign vessels transporting liquefied natural gas (LNG), aimed at bolstering the U.S. LNG shipping market over the next 22 years.
The fees will only apply to vessels operating on U.S. voyages and are capped to ensure they are not assessed more than five times a year for any specific ship.
Notably, the proposed fees will not accumulate per port call, meaning that only one charge applies per voyage, streamlining compliance for international shipping operations.
Great Lakes and Caribbean shipping routes, as well as bulk commodity exports by vessels arriving empty, are exempted from these imposed fees, further refining the scope of the regulations.
Importantly, should companies prove an order of U.S.-built vessels, they may have the associated fees on equivalent non-U.S.-built vessels waived for up to three years, creating a significant incentive for domestic shipbuilding.
Overall, the USTR’s actions signal a strategic pivot towards protecting American economic interests in the face of competitive subversion from China in the maritime sector.
The U.S. government hopes to not only rebalance the scales but also foster a healthier domestic shipbuilding environment that will contribute to sustained economic security.
image source from：https://ustr.gov/about/policy-offices/press-office/fact-sheets/2025/april/fact-sheet-ustr-takes-action-bolster-us-shipbuilding
