Transatlantic Trade Monitor: Facts You Need Now | The US Is Planning Levies on Chinese-Built Ships, Here’s What That Means to Your Supply Chain

By Simon Kaye, CEO, JAGUAR FREIGHT

Although it’s not getting the same attention as the many new tariffs implemented by the US since President Trump took office, the impact of the threatened fees on Chinese-built ships unloading at US ports will be significant. And despite the simplistic headlines, there is more intention (and maybe even a little bipartisanship) behind the added fees than simply being a way to punish China or create more revenue.

Here we’ll explore the nuance and intent of the fees and the big-picture impact on importers and global supply chains.

Why is the US imposing the fees?

From a political standpoint, it is interesting that the US government began investigating China’s dominance in the shipbuilding industry during the Biden administration. A report released in January 2025 concluded that China’s financial support, barriers for foreign companies, intellectual property (IP) theft, sourcing policies, and forced technology transfers provided its shipbuilding and maritime industries unfair advantages.

Recently, President Donald Trump announced that he would create a new office of shipbuilding in the White House that would offer support, including special tax incentives, to return more shipbuilding to the US. Currently, Chinese manufacturing is responsible for as much as 75%-80% of global fleets.

There is added urgency due to concern that, as a result of growing geopolitical tensions, the Chinese government could act to commandeer Chinese-built ships. Limiting access to ships and capacity would impact US companies and global supply chains. The well-publicized new fees are intended as an incentive to bolster shipbuilding in the US and begin to offset China’s dominance.

Noteworthy is that the US stance is already having an impact, as CMA CGM, the world’s 3^rd largest ocean carrier, almost immediately announced it will be investing $20B over the next four years to expand its maritime, warehousing, and air cargo operations in the US, according to a March 6 press release. The funds will allow the shipping company to triple its US-flagged vessels and increase data connectivity at ports around the country, including New York, Los Angeles, Miami, Houston, and Dutch Harbor, Alaska. By some estimations, $20B equals the fees the carrier would be subject to over the four-year period. This could be the start of a trend for the industry.

What are the fees?

How the fees will be charged is slightly complex and evolving, but can be explained as follows.

Operators of vessels constructed in Chinese shipyards would incur a fee of up to $1.5 million for each entry into a U.S. port. ​

It is, however, not just Chinese vessel operators expected to be affected, as the proposed action goes further to impose a similar “service fee” on any operator whose vessel is Chinese-built or has a fleet that includes a Chinese-built vessel. Initially, the fees charged would depend on the proportion of Chinese-built ships in the fleet. However, recent indications are that the full amount will be charged for fleets with any Chinese-built vessels.

Operators with pending orders from Chinese shipyards are also subject to fees, calculated based on the percentage of such orders relative to their total fleet. ​Additionally, a service fee of up to $1 million per port entry is proposed for Chinese maritime transport operators, or up to $1,000 per net ton of the vessel’s capacity.

These measures are under consideration, with a public comment period open until March 24, 2025. The fees are likely to be negotiated or changed before implementation, so it bears watching closely. In other words, as with tariffs, the situation is extremely fluid.

What is the expected geopolitical fallout?

The Trump administration has also urged European and Asian allies to enforce fees on China-linked vessels — adding pressure to an already tense tariff situation. Many of these countries are being threatened with economic retaliation, which could include trade restrictions or even more tariffs on their exports to the US.

Another recent statement indicated the US will impose additional tariffs on Chinese-made port cranes and handling equipment, citing security risks. China has spoken out strongly against the US proposals as a violation of WTO rules and concerns it could significantly destabilize global supply chains.

Reportedly, China is considering countermeasures, including:

• New tariffs – Beijing may retaliate with more duties on American exports, targeting industries heavily reliant on Chinese supply chains.
• Access to ports – China could limit US carriers’ operations at key Asian ports and transshipment hubs.
• Critical materials – China could limit exports of rare earth metals and other vital industrial components.

Implications for global shipping and trade

Clearly, the convergence of these developments on top of already tense tariff negotiations carries profound implications for global supply chains from sourcing and shipping perspectives. Preparedness by importers is desperately needed even though the “rules of engagement” for everyone are in flux. Companies should not allow themselves to be caught flat-footed.

Here are three areas we recommend companies review and plan for disruption:

1. Shipping Operations: Ocean carriers are reassessing their operational strategies, including vessel registration and routing, to mitigate risks associated with all of the geopolitical tensions. This has the potential to change trade lanes and freight costs significantly. Aligning alternatives based on the available information with your freight forwarder is necessary.​
2. Economics and Costs: It’s not just new shipping lanes that could change costs for importers. The proposed US port fees will likely escalate operating costs for ocean carriers, leading to increased freight rates in general. This, in turn, will impact global trade dynamics and consumer prices.​
3. Alliances: The US’s call for other nations to implement similar measures against Chinese shipbuilding practices will also reshape international maritime alliances and many trade agreements separate from the US. This will require countries to balance economic interests with geopolitical considerations, which are made all the harder by the elevated level of political rhetoric still present.

Where should importers go from here?

Like tariffs, applying these new fees will have short- and long-term impacts on global supply chains. It’s hard to see how almost every international company will not be impacted, including those not directly or intentionally relying on China for sourcing or knowingly, Chinese-built ships.

For now, with so many unanswered questions, importers should still focus on preparedness and resiliency by understanding how their trade lanes and shipping costs will be impacted based on different scenarios. Although the circumstances of these fees (and tariffs) are still murky, the changes for most companies will come fast.

Compliments of Jaguar Freight – a member of the EACCNY