Office of the United States Trade Representative (USTR) proposes to impose port fee increases on Chinese vessels and vessel operators (consultation closing on 24 March 2025)

On 16 January 2025, the USTR published a notice of determination that China’s targeting of the maritime, logistics and shipbuilding sectors for dominance is actionable under Section 301 of the US Trade Act of 1974. Section 301 grants the USTR the authority to investigate and remediate, including through the imposition of tariffs or other import restrictions, foreign trade practices that it determines (1) are unreasonable or discriminatory, and (2) burdens or restricts US commerce.

Subsequently, on 21 February 2025, the USTR published its proposed actions on the basis that the USTR has “found China’s acts, policies, and practices to be unreasonable and to burden or restrict US commerce”.

In summary, the USTR’s proposed actions include its plan to impose (1) significant port fees on Chinese maritime transport operators and operators with current fleets of Chinese-built vessels (including operators with orders for such vessels), and (2) requirements for the increased use of US vessels to carry US goods in coastwise and international transport from US ports. If adopted, the proposed actions will have far reaching consequences, both politically and economically.

The deadline for submission of comments is 24 March 2025.

NRF’s fuller summary of USTR’s proposed actions can be found here, and a link to USTR’s consultation can be found here.