The Trump administration has announced new tariffs on Chinese-made ships calling at American ports. The measure, reported by CNBC on April 17, 2025, is aimed at restoring the competitiveness of the American shipbuilding industry, which has lost ground amid China's dominance. The White House hopes the new fees will reduce the United States' dependence on Chinese ships and encourage domestic manufacturing, part of its "America First" strategy.
The initiative envisages tariffs that can be significant depending on the tonnage of the vessel. For container ships, the tariffs can vary depending on their capacity, while for road carriers, the tariffs can vary depending on the number of units being transported, according to the Office of the U.S. Trade Representative (USTR). Shipowners who order new ships from the U.S. will be able to obtain a temporary tariff exemption for three years, which should encourage investment in American shipyards. The measure does not apply to ships carrying bulk cargo such as coal or grain, or to empty ships, in order to minimize the impact on exports.
The move is part of Trump’s broader trade policy aimed at countering Chinese influence in the global economy. According to a USTR investigation launched under the Biden administration, China has achieved dominance in shipbuilding through subsidies, forced technology transfers, and other unfair practices. Chinese shipyards account for more than half of the world’s ship production, while American shipyards produce only a handful of commercial ships a year. The new tariffs are intended to correct that imbalance by creating economic incentives to bring manufacturing back to the United States.
According to Reuters, the initial proposed fees of up to $3 million per port call prompted protests from U.S. and international shipping companies, including MSC and Maersk, which warned of potential supply disruptions and price increases. In response, the Trump administration adjusted the plan, lowering the rates and proposing a flexible system that takes into account the share of Chinese vessels in an operator’s fleet and their tonnage. The changes, as The New York Times notes, followed a March hearing where more than 300 trade associations expressed concerns about the implications for logistics.
According to Bloomberg, China controls 98% of the world’s merchant fleet, and 21% of U.S. imports were shipped on Chinese ships in 2024. The tariffs could drive up freight costs, which analysts estimate would increase the price of goods for American consumers. At the same time, according to The Washington Post, the administration is preparing an executive order called “Make Shipbuilding Great Again,” which includes subsidies for shipyards and tax breaks for operators using American ships. This should support shipyards in Philadelphia, Mississippi, and Louisiana, where there is potential for increased production.
The Chinese side sharply criticized the initiative. Chinese Foreign Ministry spokesman Lin Jian said the tariffs would “hurt not only China but also the United States itself,” and promised retaliatory measures. According to Nikkei Asia, Beijing is considering imposing its own levies on American goods and restrictions on U.S. ships in its ports. This could escalate a trade war that has already seen tariffs on Chinese goods rise to 145% in April 2025, according to CNBC.