Donald Trump has directed the US Trade Representative (USTR) to proceed with a controversial plan aimed at bolstering the US maritime industry. A key component of this plan involves imposing significant port fees, potentially reaching millions of dollars, on ships affiliated with China. While the proposal has garnered support from both Democrats and Republicans who seek to curb China’s influence in global shipping and strengthen the US shipbuilding sector, it has also drawn heavy criticism from various industries. Critics warn of potentially devastating consequences for the US economy and major disruptions to supply chains.
The executive order signed by Trump mandates that the USTR finalize a comprehensive plan, including the debated port fees on Chinese-affiliated ships, within 210 days. The order also instructs the USTR to consider tariffs on ship-to-shore cranes and other cargo-handling equipment containing Chinese components or originating from companies with substantial Chinese influence. Furthermore, the Department of Homeland Security is tasked with ensuring the collection of port maintenance fees and preventing freight companies from circumventing these fees by diverting goods through ports in Mexico and Canada before entering the US.
In response to the widespread concerns, USTR representative Jamieson Greer has indicated that not all the initially proposed measures will necessarily be implemented. He suggested that the USTR will make a final decision on the most appropriate measures by mid-month, acknowledging a possible “communication breakdown” that led some to believe all measures were set in stone. Reports citing unnamed officials suggest the Trump administration is considering easing the proposed tariffs, potentially through delayed implementation or revised fee structures to lessen the financial burden on affected vessels. The original proposal outlined fees that could reach up to USD 3 million per port call for some ships.