Trump Administration Imposes New Tariffs on Chinese-Made Ships

The Trump administration has announced new tariffs on Chinese-made ships docking at U.S. ports. This measure, aims to enhance the competitiveness of American shipyards that have struggled against China’s growing dominance in global ship production.

The new tariffs, which vary based on the tonnage of the vessels, will impose significant fees on container ships according to their capacity, and on road carriers based on the number of units transported, as outlined by the Office of the U.S. Trade Representative (USTR). To incentivize investment in domestic shipbuilding, shipowners who order new vessels from U.S. manufacturers will be eligible for a temporary tariff exemption lasting three years. However, the tariffs will not apply to ships carrying bulk cargo, such as coal or grain, nor to empty vessels, in an effort to mitigate potential impacts on exports.

This initiative is part of Trump’s broader trade strategy to counter Chinese influence in the global economy. A USTR investigation initiated during the Biden administration revealed that China has established its shipbuilding dominance through various unfair practices, including subsidies and forced technology transfers. Currently, Chinese shipyards account for over half of the world’s ship production, while American shipyards produce only a limited number of commercial vessels annually. The new tariffs are designed to rectify this imbalance by encouraging domestic manufacturing.

However, the initial proposal of up to $3 million in tariffs per port call faced backlash from U.S. and international shipping companies, including major players like MSC and Maersk. These companies expressed concerns about potential supply chain disruptions and increased costs. In response to the pushback, the Trump administration revised its plan, lowering the fees and introducing a flexible structure that considers the share of Chinese vessels in an operator’s fleet and their tonnage. The adjustments followed a March hearing where over 300 trade associations voiced their worries about the logistical implications of the tariffs.

According to available data, China currently controls 98% of the global merchant fleet, with 21% of U.S. imports transported on Chinese ships in 2024. Analysts predict that the tariffs could lead to increased freight costs, ultimately raising prices for American consumers. In parallel, the administration is reportedly preparing an executive order named “Make Shipbuilding Great Again,” which plans to include subsidies for shipyards and tax incentives for operators utilizing American-made vessels. This initiative aims to bolster shipbuilding in key locations such as Philadelphia, Mississippi, and Louisiana.

The Chinese government has condemned the new tariffs, with Foreign Ministry spokesman Lin Jian stating that the measures would negatively impact both China and the United States. Beijing is reportedly considering retaliatory actions, including imposing its own tariffs on American goods and restricting U.S. ships from its ports. Such moves could escalate a trade conflict that has already seen tariffs on Chinese products rise to 145%.