President Donald Trump’s initiative to support the U.S. shipbuilding industry may unintentionally harm domestic operators and ports. Maritime executives are set to present their concerns to the U.S. Trade Representative in hearings this week, highlighting potential adverse impacts of the proposed fees on China-linked vessels. The administration’s plan includes a charge of up to $1.5 million for Chinese-built or flagged ships docking at U.S. ports.
Industry leaders argue that this fee structure would restrict options for U.S. ship operators, forcing them to concentrate traffic at major ports while sidelining smaller ones. Edward Gonzalez, CEO of Seaboard Marine, emphasized the importance of ensuring that any support for shipbuilding does not come at the expense of existing U.S.-owned carriers. Many U.S. operators depend on vessels built in China; for instance, Seaboard Marine has 16 out of 24 ships constructed there.
The share of shipbuilding attributed to China has surged, climbing from less than 5% in 1999 to over 50% in 2023, according to the U.S. Trade Representative (USTR). To completely bypass the new fees, operators would need to exclude ships built in China from their fleets or shift operations outside of it, which presents considerable challenges. Some industry experts liken these fees to a severe form of tariffs, asserting that they could lead to unintended consequences.
Additionally, alternatives like rerouting cargoes through Canadian and Mexican ports could undermine U.S. investments in port facilities and infrastructure, ultimately jeopardizing jobs and local economies. For example, Seaport Manatee in Florida, heavily reliant on U.S.-based World Direct Shipping, risks seeing its taxpayer-funded improvements wasted due to these proposed fees. Daniel Blazer, owner of World Direct Shipping, noted that two of its three vessels are Chinese-built, placing them in jeopardy under the new USTR regulations.