09/18/2025

USTR New Measures to Counter China’s Influence in Maritime and Shipbuilding Sectors begins October 14, 2025

Market Advisory: USTR imposes escalating fees on Chinese ships starting October 14, targeting China's maritime dominance.

Introduction

On April 17, 2025, the Office of the U.S. Trade Representative (USTR) unveiled a series of targeted actions aimed at curbing China’s dominance in the maritime, logistics, and shipbuilding industries.

This announcement follows the conclusion of a comprehensive year-long Section 301 investigation, which was initiated in response to a petition from five major national labor unions. The investigation included public hearings and consultations with industry experts, ultimately finding that China’s practices in these critical sectors are both unreasonable and damaging to U.S. commercial interests.

USTR's Two-Phase Plan

In response, USTR outlined a two-phase plan to address the situation:

Phase 1 begins October 14, 2025, and will impose new fees on Chinese ship operators and owners, calculated based on vessel size and usage. Additional fees will also target Chinese-built ships and foreign-built car carriers, with the goal of incentivizing increased shipbuilding activity within the United States.

Phase 2 is set to commence in three years and will introduce restrictions on foreign-built liquefied natural gas (LNG) vessels. These restrictions will be phased in over a 22-year period, with the intention of encouraging the construction and deployment of U.S.-built LNG ships.

Key Dates and Service Fees

Service Fee on Chinese Vessel Operators and Vessel Owners of China

Effective as of October 14, 2025, a fee in the amount of $50 per net ton for the arriving vessel.
Effective as of April 17, 2026, a fee in the amount of $80 per net ton for the arriving vessel.
Effective as of April 17, 2027, a fee in the amount of $110 per net ton for the arriving vessel.
Effective as of April 17, 2028, a fee in the amount of $140 per net ton for the arriving vessel.

The fee will be charged up to five times per year, per vessel.

Service Fee on Vessel Operators of Chinese-Built Vessels

A vessel operator that is not a vessel operator of China must pay the higher of these two fee calculation methods:

Method 1:

Effective as of October 14, 2025, a fee in the amount of $18 per net ton for the arriving vessel.
Effective as of April 17, 2026, a fee in the amount of $23 per net ton for the arriving vessel.
Effective as of April 17, 2027, a fee in the amount of $28 per net ton for the arriving vessel.
Effective as of April 17, 2028, a fee in the amount of $33 per net ton for the arriving vessel.

Method 2:

Effective as of: October 14, 2025, a fee in the amount of $120 for each container discharged.
Effective as of: April 17, 2026, a fee in the amount of $153 for each container discharged.
Effective as of: April 17, 2027, a fee in the amount of $195 for each container discharged.
Effective as of: April 17, 2028, a fee in the amount of $250 for each container discharged.

The fee will be charged up to five times per year, per vessel.