USTR enforces shipbuilding modifications, while China retaliates with vessel charges

Earlier today, actions outlined by the Office of the United States Trade Representative (USTR), in regards to announced modifications of certain aspects of the responsive action to modify American shipbuilding from April, went into effect.

This follows an April 17 statement issued by the USTR office that highlighted the main components of this effort including:

• changing the basis for calculating service fees on vessel operators of foreign-built vehicle carriers and setting the fee at $46 per net ton, as of October 14, 2025;
• eliminating, retroactive to April 17, 2025, a provision permitting the suspension of liquid natural gas (LNG) export licenses if certain restrictions on the use of foreign-built vessels are not met; and
• imposing tariffs of 100 percent on certain ship-to-shore cranes and cargo handling equipment

The USTR added that it is also proposing other further modifications from its requests for public comment made in Federal Register notices in Aprill and June, which include: adding a carve-out from fees for certain ethane and liquid petroleum gas (LPG) carriers under long-term charter; and imposing additional tariffs of up to 150% on certain cargo handling equipment (e.g., rubber tire gantry cranes) and components of such equipment.

It also noted that, “while USTR evaluates public comments on these proposed further modifications, the payment of certain service fees may be deferred through December 10, 2025, as set out in today’s notice.”

The driver for these actions, according to USTR, is that it maintains China is taking unfair, non-market practices related to shipbuilding, maritime logistics, and other sectors, stating that China has “targeted these sectors for dominance,” adding that China is doing it in unreasonable ways that burden or restrict U.S. commerce—in various ways, including very large shipbuilding capacity, subsidies, and control over inputs, like steel, and domination of related infrastructure, logistics, and shipping services, noted a CNBC report.

What’s more, USTR, added that the U.S. builds fewer than five commercial ships per year, whereas China builds more than 17,000.

As for China, Reuters reported that it has started to collect special charges on U.S.-owned, operated, built or flagged vessels, with Chinese-built ships exempted from the charges. It cited a report from Chinese state broadcaster CCTV, which included specific provisions on exemptions that also is comprised of empty ships entering Chinese shipyards for repair—with these fees to be collected at the first port of entry on a single voyage for first five voyages within a year and follow an annual billing cycle starting on April 17.