The Office of the United States Trade Representative (USTR) announced measures to address China’s influence over the maritime, logistics, and shipbuilding sectors. This development follows a year-long Section 301 investigation that involved a public hearing, collection of about 600 public comments, and consultations with government agency experts.
Ambassador Greer commented on the significance of these measures: “Ships and shipping are vital to American economic security and the free flow of commerce.” He noted that the actions taken by the Trump administration will combat Chinese dominance, protect the U.S. supply chain, and boost demand for ships built in the United States.
The actions, intended to support U.S. shipbuilding while minimizing disruption to American exporters, will unfold in two phases. Initially, applicable fees will be set at zero for 180 days. Thereafter, fees will be imposed incrementally on vessel owners and operators based on net tonnage, specifically targeting Chinese and foreign-built ships while offering incentives for U.S.-built car carrier vessels. The second phase, set to begin after three years, will gradually restrict LNG transportation via foreign vessels over a 22-year period.
USTR is also inviting public comments on proposed tariffs on ship-to-shore cranes and other cargo handling equipment, aligning with the President’s Maritime Executive Order. The deadline for individuals wishing to appear at the hearing is May 8, 2025, with further comments open for submission.
The Section 301 investigation emerged from a petition filed by five national labor unions on March 12, 2024, urging scrutiny of China’s dominance strategies. The involved unions include the United Steelworkers, International Association of Machinists, International Brotherhood of Boilermakers, International Brotherhood of Electrical Workers, and Maritime Trades Department. Following the petition, the USTR initiated an investigation, later concluding that China’s approach burdens U.S. commerce through business displacement, decreased competition, and increased dependency risk, leading to a need for action under Sections 301(b) and 304(a) of the Trade Act.
The USTR released a Federal Register notice on February 21, 2025, proposing these actions, which must be finalized by April 17, 2025. The complete petition and additional public documents related to this investigation are available for review.
