The Trump administration has revised its proposal for port fees on vessels constructed in China, according to a Federal Register notice posted by the U.S. Trade Representative on Thursday.
The initial February proposal suggested fees up to $1.5 million per port call, which generated concern within the global shipping industry.
The revised policy exempts vessels servicing the Great Lakes, the Caribbean, and U.S. territories from these fees. U.S.-based carriers Matson and Seaboard Marine, as well as empty ships arriving to load U.S. exports, will also be exempt.
American and Canadian vessels calling at Great Lakes ports have received a reprieve. Foreign roll-on/roll-off auto carriers may be eligible for fee refunds if they order or take delivery of a U.S.-built vessel of equivalent capacity within three years.
Liquefied natural gas (LNG) carriers face a phased-in requirement to move 1% of U.S. LNG exports on U.S.-built, operated, and flagged vessels within four years, increasing to 4% by 2035 and 15% by 2047.
The implementation of the levies will occur in 180 days. The USTR will not impose fees based on the percentage of Chinese-built ships in a fleet or on prospective orders.
Fees will be applied once per voyage, with a maximum of six times annually for affected ships.
The USTR has opted for fees based on net tonnage ($50 per net ton, increasing by $30 annually for three years for Chinese-built and owned ships) or per container unloaded ($120 per container, rising to $250 after three years), whichever is higher.
Chinese-built ships owned by non-Chinese firms will be charged $18 per net ton, with annual increases of $5 over the same period.
U.S. Trade Representative Jamieson Greer stated, "Ships and shipping are vital to American economic security and the free flow of commerce.
The Trump administration's actions will begin to reverse Chinese dominance, address threats to the U.S. supply chain, and send a demand signal for U.S.-built ships."
The USTR will hold a hearing on May 19 to discuss proposed tariffs on ship-to-shore cranes (potentially 100%), chassis, and chassis parts.