Beijing/Washington: The United States and China have opened a new front in their escalating trade war, as both nations begin charging additional port fees on ocean shipping companies that transport everything from holiday goods to crude oil.
China Imposes New Port Charges
China confirmed on Tuesday that it has started collecting special port fees on vessels that are US-owned, operated, built, or flagged. However, the levies exclude Chinese-built ships, as well as empty vessels entering Chinese shipyards for repairs.
According to state broadcaster CCTV, the fees will be collected at the first port of entry on a voyage or applied to the first five voyages within a year, under an annual billing cycle beginning April 17.
US Fees Take Effect October 14
Earlier this year, the Trump administration announced similar charges on China-linked ships, aiming to reduce China’s dominance in the global maritime and shipbuilding industries and to boost US shipyards.
A prior Biden-era investigation concluded that China uses unfair trade practices to maintain control over the maritime sector, paving the way for these new penalties.
The United States is set to begin collecting fees on October 14, with analysts predicting that China-owned COSCO Shipping will be hit hardest—bearing nearly half of the $3.2 billion cost expected in 2026.
China Strikes Back
In a reciprocal move, China announced last week that it would impose matching port fees on US-linked vessels, effective the same day.
Analysts at Jefferies estimated that 13% of global crude tankers and 11% of container ships will be affected by these twin measures.
“The tit-for-tat symmetry locks both economies into a spiral of maritime taxation, risking distortions in global freight flows,” said Xclusiv Shipbrokers Inc, a Greece-based maritime firm.
Industry Reaction
A Shanghai-based trade consultant noted that the impact on shipping operations may be limited, as rising costs will likely be passed on to consumers.
“What are we going to do—stop shipping?” the consultant said. “Trade is already disrupted, but companies are finding ways to adapt.”
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