The United States and China have formally launched reciprocal port charges on vessels linked to the other country, escalating tensions in an already fraught US-China trade standoff.
The US Trade Representative (USTR) first announced its intention to impose extra port fees in April 2025 under the authority of Section 301 of the Trade Act of 1974.
The fees are designed to target “vessels constructed in China, vessels with Chinese owners or operators, and foreign-built vehicle carriers calling US ports.” As of October 14, the United States began collecting these additional charges.
Under the proposed structure Chinese-owned or -operated vessels calling at US ports will pay US$50 per net tonne per voyage. For non-Chinese operators using Chinese-built ships, the charge is pegged at US$18 per net tonne or US$120 per container, whichever is higher.
There are caps on how many voyages per year can incur the fee (maximum of five) and some exemptions. Supporters argue the US measure seeks to curb China’s dominance in global maritime, logistics, and shipbuilding sectors.
Chinese Countermeasures
Anticipating the US move, China announced on October 10 that it would impose retaliatory port service fees on US-linked vessels starting October 14. China’s Ministry of Transport said the new charges will apply to ships that are:
owned or operated by US entities,
built in the US
flying the US flag,
or having 25% or more US ownership stake.
However, certain exemptions apply:
US-linked ships constructed in China (i.e., Chinese-built) are exempt.
Empty vessels entering for repair at Chinese shipyards are exempt.
The starting rate is US$56 per net tonne per voyage, applicable up to five voyages per year. China also plans incremental increases in the fee. If fees go unpaid, the ship’s import or export processing could be blocked.
Impacts and Risks
The imposition of port fees has already begun reshaping global shipping routes. Ship operators are reworking registration, ownership or charter structures to avoid exposure. Some vessels are diverting to alternate ports to evade the charges.
In the tanker sector, freight rates have surged. Analysts estimate that China’s retaliation could add more than US$7 per barrel of shipping cost to a US-linked very large crude carrier (VLCC) moving to China. Critics warn the port fees risk distorting global freight flows and triggering collateral damage in trade chains.
The US has defended its fees as a tool to protect national security, supply chain resilience, and to counter unfair Chinese practices in shipbuilding.
Meanwhile, China presents its move as a justified countermeasure to discriminatory US policies.
As the two countries signal firm resolve, the shipping industry finds itself on the frontlines of a renewed trade confrontation. Analysts will watch closely whether these measures escalate further or provoke negotiations to retreat from a maritime standoff.
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