On April 17, 2025, the Office of the U.S. Trade Representative (USTR) issued its final notice in its investigation into China’s unfair practices affecting the shipbuilding and maritime logistics sectors. The U.S. will begin charging escalating fees on Chinese-owned and -operated vessels, Chinese-built vessels, and foreign-built car carriers arriving in U.S. ports starting this October. 

The fees are intended to reduce China’s global dominance in shipbuilding and maritime logistics and encourage the development of U.S. shipbuilding. The plan is a toned-down version of what the Trump administration proposed in February, which included fees of up to $1.5 million on Chinese-built ships that visit U.S. ports.

The fees are the result of a 13-month investigation process that started during the Biden administration when several labor unions petitioned the USTR to investigate China’s policies in the maritime, logistics, and shipbuilding sector. The petitioners requested several types of relief, including the assessment of a per-vessel per-port fee that would be collected and deposited in a newly created “U.S. Commercial Shipbuilding Revitalization Fund” to support U.S. shipbuilding. China produces about 1,700 ships per year compared to around five for the U.S.
The first of two phases will begin October 14, when the U.S. will begin to charge:

Fees on vessels with Chinese operators or owners

• The fees will be based on net vessel tonnage, increasing incrementally over time.
• Fees will begin at $50 per net ton of the arriving vessel and will move up to $140/net ton over the course of three years.
• Fees will be collected based on the first U.S. port call of affected vessels on a particular string call. 
  Fees on Chinese-built ships
•These fees will be based on net tonnage or containers, increasing incrementally over the following years; and fees accrue to vessel operators who do not otherwise qualify as Chinese vessel operators/owners.
• Fees will begin at $18 per net ton of the arriving vessel and will move up to $33/net ton over the course of three years.
• Alternatively, fees will be charged based on containers being discharged, starting at $120 per container, and increasing to $250 per container. The higher of the two fees is the one owed.
• Fee remissions are available for vessel operators that order and take delivery of a U.S.-built vessel with equal/greater capacity within a three-year time period.
• Fees will be collected based on the first U.S. port call of affected vessels on a particular string.
• Certain vessels will be exempted from the fees, such as empty/ballast vessels, vessels with U.S. beneficial ownership of at least 75%, small vessels, vessels on short-haul voyages, and specialized vessels for the transport of liquid, bulk chemicals.

Given the potential impacts to small ports if this fee were to be assessed at each port of call, the fee will be assessed (1) upon entry at the first U.S. port or place from a foreign destination per rotation or string of U.S. port calls, (2) at the first U.S. port within the U.S. customs territory, and (3) no more than five times a year on an individual vessel.
  Fees on foreign-built car carrier vessels

• These fees will be set at $150 per car equivalent unit capacity, but operators can receive fee remissions if they order and take delivery of a U.S.-built vessel with equal/greater capacity within a three-year time period.

The second phase will begin three years from now. In that phase, the U.S. will implement restrictions on transporting liquefied natural gas (LNG) via foreign vessels. The restrictions will increase incrementally through 2047. 

In addition to the port fees, USTR unveiled a proposal to impose tariffs of up to 100% on ship-to-shore cranes and 20%–100% on containers and chassis linked to China. A public hearing for those duties is set for May 19. To view the Federal Register notice, visit https://bit.ly/port-fees.

There is concern among some foundries that the new shipping fees will likely add costs to foundry supply chains. A wide variety of raw materials and other critical inputs needed to produce ferrous and nonferrous castings must be imported because they are not available domestically or in the quality and quantity needed. AFS continues to urge the administration to implement an exclusion process for U.S. metalcasters from tariffs on our members’ raw materials and from these new shipping fees.  

DOC Investigates Imports of Semiconductors

The Trump administration has formally launched a new Section 232 investigation on imports of semiconductors (including downstream electronic products). The U.S. Department of Commerce will examine the impact of the respective imports on U.S. national security and economic stability. This will culminate in a decision by the president to take action (including imposing tariffs) to remedy any identified threats. 

The report could be submitted substantially sooner than the required 270 days. The agency is accepting comments no later than May. The U.S. relies heavily on chips imported from Taiwan. AFS is seeking member feedback on potential impact to foundries and foundry machinery suppliers. Please contact Stephanie Salmon in the AFS Washington Office, ssalmon@afsinc.org, with your feedback on this investigation or other trade matters.