US–China Trade War Expands to the Seas With New Port Fees on Each Other's Ships

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Vietnam Seeks Tariff Relief, Plans to Deepen US Trade Ties
A tourist holds a Vietnamese flag as people watching the sunrise from the summit of Mount Fuji early on August 15, 2022, some 70 kilometres (43 miles) west of the capital Tokyo. PHILIP FONG/AFP via Getty Images/Getty Images

The long-running trade battle between the United States and China is now making waves at sea.

Starting today, both countries will begin charging new port fees on each other's ships, escalating tensions and adding more costs to global shipping.

The US and China, the world's two largest economies, are targeting each other's shipping industries with fresh fees meant to protect their domestic markets.

These new charges will apply to ships carrying everything from oil and coal to holiday goods and furniture.

The US announced its new port charges earlier this year, with the goal of boosting American shipbuilders and weakening China's influence over the global shipping industry.

The fees will apply to Chinese-owned, operated, built, or flagged vessels docking at US ports.

In return, China quickly responded with its own set of fees on US-linked ships.

According to the BBC, as of today, any US-owned, operated, built, or flagged ship entering a Chinese port will be charged 400 yuan ($56) per net tonne.

These fees will rise yearly, reaching 1,120 yuan per tonne by April 2028.

China's Port Fees Could Cost Ships $3 Million

Chinese authorities say the new charges are meant to protect their industry from what they call "discriminatory" actions by the US However, ships built in China—even if owned or operated by the US—will not be charged. Vessels arriving empty for repairs are also exempt.

"This tit-for-tat symmetry locks both economies into a spiral of maritime taxation that risks distorting global freight flows," said Xclusiv Shipbrokers, a maritime research firm, Reuters reported.

The impact could be massive. Analysts predict that some ships carrying coal, oil, and other raw materials might pay as much as $3 million in port fees right away.

By 2028, the largest vessels could face over $10 million in extra charges per trip, according to Claire Chong of Thurlestone Shipping.

The Chinese state media claims the US action breaks a long-standing maritime transport deal. In a statement Tuesday, a Chinese trade official said, "The US cannot demand talks while threatening us with new restrictions. That's not how respectful trade works."

Despite this, US Treasury Secretary Scott Bessent remains hopeful. He said President Trump and China's President Xi Jinping are still expected to meet in South Korea later this month. "The relationship is still open. Let's see where it goes," Bessent said.

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