Reference News Network, July 10 report - According to the website of the U.S. "Wall Street Journal" on July 10, U.S. port operators have warned that if the Trump administration proceeds with its proposal to impose new tariffs on port equipment, the cost of major upgrades at U.S. ports will surge by tens of millions of dollars.
The report said that in an effort to counter China's dominant position in the shipping industry, the U.S. government proposed imposing tariffs as high as 100% on cranes and other cargo-handling equipment made in China. Shipping industry officials said these fees would be added on top of the 25% tariffs imposed by the Biden administration on cranes made in China, and were additional charges beyond the tariffs on China considered by Trump's trade team.
Private companies that operate ports and maritime terminals said these fees would penalize freight portals that had already ordered cranes before the tariffs were considered, and did not take into account the scarcity of cranes manufactured outside of China.
The report said that a heavy industry company in Shanghai occupies nearly 80% of the shore container crane (quay crane) market in U.S. ports. According to the U.S. government, more than 70% of quay cranes worldwide are produced in China. Chinese quay cranes are popular because of their ample supply and low price.
Charlie Jenkins, CEO of the Port of Houston, testified earlier this year at a hearing of the Office of the U.S. Trade Representative that according to discussions with some quay crane manufacturers, it would take about ten years to develop sufficient quay crane manufacturing capacity in the United States. Jenkins said that in the next six years, his port needs to order 22 quay cranes, which could result in tariffs amounting to $100 million.
U.S. port operators are requesting the U.S. government to grant tariff exemptions for quay cranes ordered by the end of 2024. They also asked the Office of the U.S. Trade Representative to delay the imposition of tariffs on new quay crane orders for three years to allow time for the development of quay crane manufacturing in the United States or for allied manufacturers to expand production.
The Office of the U.S. Trade Representative decided earlier this year that starting in mid-October this year, the U.S. will charge fees on ship owners and operators of vessels built in China that call at U.S. ports.
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