US-China trade war intensifies, Trump now another trick to bring X-Jinping to its knees, imposed THIS tax for…
US-China Trade War 2025: The Trump administration of United States has announced the imposition of new port fees on Chinese ships, which could once again escalate trade tensions between the US and China. According to the plan released by the US Trade Representative (USTR), this tax will be applicable on ships owned, operated or built by the Chinese.
As per plan, the tax will be increased in a phased manner starting from October 14, 2025 to April 2028. Initially, this tax will be $50 per tonne, which will increase to $140 per tonne. Additionally, the tax per container can increase from $120 to $250.
China’s Foreign Ministry criticised
According to SCMP, China’s Foreign Ministry spokesman Lin Jian criticised the decision, saying that this move could disrupt the global supply chain, increase costs and increase the burden of inflation on American consumers. He said that this policy would not be successful in reviving the shipbuilding industry in America. According to USTR’s plan, each ship will be charged a maximum of five times a year. The tax will be levied at the port where the ship first enters the US, which will prevent bypassing smaller ports.
Major shipping companies in China
Experts believe that this policy will have the biggest impact on major Chinese shipping companies such as COSCO and OOCL. According to Lars Jensen, CEO of shipping consultancy Vespucci Maritime, Ocean Alliance, which includes COSCO, OOCL, Evergreen and CMA CGM, may need to make changes to their network. He estimates that the tax per port call for some large Chinese container ships could exceed $10 million. On the other hand, this tax on Chinese-built ships could be up to $4 million per port call.
Discounts on US ship orders
The US is also preparing to impose taxes on LNG-powered vehicles and foreign-made vehicle transporters. Foreign automobile carriers will have to pay a tax of $150 per unit. This will come into effect after the exemption period ends. However, USTR has also given relief in some cases. Such as small ships (less than 4,000 TEU) and short-distance voyages (less than 2,000 nautical miles) have been exempted. Apart from this, if an operator orders an American ship of the same size, then it can get exemption from tax on Chinese ships.
USTR proposes 100% tariff
USTR has also proposed tariffs of up to 100% on ship-to-shore cranes and cargo handling equipment that are imported from China. This is a step towards making the US maritime industry self-reliant. Global concerns are growing about the impact of this new policy. Clarkson Research has revised its global shipbuilding forecast for 2025 by a 30% decline. Investors have now turned cautious due to uncertainty in US trade policies.
WTO warned
The World Trade Organisation (WTO) has warned that rising tariffs and policy uncertainty could cause global merchandise trade to fall by 0.2% in 2025, much lower than the 2.7% growth previously projected. Exports to North America are forecast to fall by 12.6% and imports by 9.6%.
USTR said in its report that the US’s share in global shipbuilding is just 0.1%, while China alone builds more ships than the rest of the world. According to 2024 data, China secured 70% of new shipbuilding orders, while South Korea 17% and Japan 5%.
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