[Source/Observer Network by Ruan Jiaqi]

The Trump administration has taken action on the "poisonous plan" to charge for ships built in China entering American ports. According to reports from Bloomberg, Reuters, and other US media outlets, the Office of the United States Trade Representative (USTR) released a Federal Register notice on its official website on Thursday. The notice stated that all vessels built in China and owned by Chinese entities will be subject to charges based on the quantity of cargo they carry if they dock at American ports. These measures will officially take effect after 180 days, implemented in two phases.

According to the details published in the notice, in the first phase starting October 14 of this year, the U.S. will charge so-called "ocean shipping service fees" at a rate of $50 per net tonnage for any vessel operated by Chinese entities or owned by Chinese entities. This amount will increase annually by $30 over three years, reaching $140 per net tonnage by 2028.

For ocean shipping service providers using vessels built in China, charges will be levied based on either the ship's net tonnage or the number of containers, with the higher cost being applied. This amount will also increase annually, starting at $18 per net tonnage and rising to $33 by 2028. An alternative fee structure is $120 per container, increasing to $250 by 2028.

Vessels not built in the U.S. transporting automobiles have separate charging standards. The initial charge is $150 per car equivalent unit (CEU).

In the second phase, starting in 2028, the USTR will limit foreign-built vessels from engaging in liquefied natural gas transport business. Over the next 22 years, there will be a gradual requirement to increase the proportion of vessels flying the U.S. flag and operated by U.S. entities until 2047 when this proportion reaches 15%.

Data shows that in 2025, China's share of the global shipyard annual total output exceeds 50%. Chart by Bloomberg.

According to reports from CNBC, the notice claims that to avoid affecting small ports, these fees will be charged per voyage and paid upon the vessel’s first entry into an American port or location. The maximum number of times a single vessel pays per year will not exceed six.

US media noted that the fees for vessels built in China do not include shipping services in the Great Lakes region of North America, the Caribbean, or between the United States and its overseas territories. Ships arriving empty at American ports, preparing to load bulk export goods such as coal and grain, are also exempted.

In addition, if the shipowner can provide evidence of an order for a U.S.-built vessel, they qualify for a three-year exemption from fees or restrictions.

According to Reuters, the USTR also targeted ship-to-shore cranes, container transport chassis, and chassis components, proposing a maximum 100% tariff on such port handling equipment from China. A hearing on the tariff measures is planned for May 19.

US media noted that compared to the original fee scheme hyped by the Trump administration, this new proposal reflects a "softening" attitude. The initial proposal in late February originally planned to impose a so-called "additional service fee" of up to $1.5 million on vessels made in China entering U.S. ports.

The USTR acknowledged in the notice that this change was due to the original plan causing widespread upheaval throughout the shipping industry and among broader supply chain participants.

At two public hearings held on March 24 and 26, more than 300 trade groups and other stakeholders provided testimony and public comments. There were heated conflicts between US industry representatives and lawmakers. Many warned the US government in letters and testimony that "the US does not have the capability to win this war."

The new proposal, which appears to make concessions, did not alleviate industry concerns. Bloomberg pointed out that especially given Trump's already ignited global tariff war, many warned that this fee plan would not only disrupt international shipping but also act as a "hidden tax," exacerbating the burden of Trump's numerous, jaw-dropping tariffs and further escalating the already tense trade conflict between the two largest world economies.

BBC cited expert opinions stating that amid the release of the US side's new announcement, Trump's trade tariff policies have already disrupted global trade.

Marco Forgione, General Director of the Chartered Institute of Export and International Trade UK, said, "We see many ships originally destined for the US from China changing routes, heading instead to the UK and EU regions."

"This is the direct impact of Trump's series of initiatives." He added that increased uncertainty and heightened trade disruptions would lead to higher prices for US consumers.

Lloyd's List also expressed concern that if tensions escalate further, this measure might prompt China to retaliate with reciprocal port fees or even larger-scale, more severe countermeasures, posing greater risks to the fragmentation of global trade.

US shipping companies heavily rely on vessels made in China. NBC chart.

The article also mentioned that what is more worrying is that given the Trump administration's arbitrary and capricious policies since taking office, "for many people, the more critical question than the fee structure is how long this policy will last."

"Will it be quickly exempted or reduced like many of Trump's tariff policies? Will it be enforced long-term during this administration? Or will it become part of the US's long-term strategy to revitalize its shipbuilding industry?" No one knows.

In response to the US打压on ships built in China, on April 10, Chinese Foreign Ministry spokesperson Lin Jian responded at a regular press conference, stating that the development of China's shipbuilding industry is the result of enterprise technological innovation and active participation in market competition, making significant contributions to global trade development and the stable and secure operation of the global supply chain. Multiple US research reports show that US shipbuilding lost its competitive edge years ago due to excessive protectionism. Blaming China for its own issues lacks factual basis and contradicts economic common sense. The unilateralism and protectionist practices of the US are unpopular and will only increase global shipping costs, disrupt the stability of global production and supply chains, harm the interests of various countries, and ultimately fail to revive US shipbuilding.

This article is an exclusive piece by Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7494501797076156962/

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