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The Trump administration has released a plan to impose significant fees on Chinese shipping companies, as well as any Chinese-built ships that enter U.S.-controlled ports (The Wall Street Journal, subscription).

The background: In March 2024, the Biden administration opened an investigation into China’s shipbuilding and shipping practices, and this past January, the U.S. Trade Representative determined that China was involved in unfair trade practices in the maritime and shipbuilding sectors. The Trump administration cited these findings in proposing the stiff new fees. 

• The proposed fees follow the Trump administration’s decision to impose 10% tariffs on Chinese imports, on top of tariffs the administration had imposed already during President Trump’s first term.

The fees: Under the proposal, ships built by Chinese companies would be hit with fees up to $1 million every time they entered a U.S. port. The fee would be calculated based on the size of a company’s Chinese-built fleet, even if no additional ships came to the United States. Companies would face additional fees based on how much of their future ship orders come from China.

• Because large ships tend to make multiple stops in U.S. ports, the fees would be multiplied—making moving goods to and around the United States substantially more expensive.

The pivot: The proposal also requires that a certain amount of U.S. exports be moved to U.S.-built vessels—a challenge for U.S. companies, since the U.S. does not produce a significant number of commercial oceangoing ships.

Next steps: The proposal is open to comments from the public until a hearing on March 24. Following the hearing, the Trump administration will decide whether to follow through on the plan.