Starting in October 2025, the White House will begin imposing new fees on ships owned or built by Chinese companies that dock at U.S. ports. This policy intends to push back against China’s dominance in global shipping and shipbuilding, with U.S. officials citing concerns over unfair subsidies and trade practices. While the Biden administration initiated the investigation, the Trump administration finalized the policy.
According to officials, these fees will protect U.S. shipbuilders and supply chains. The new charges are part of a broader effort to incentivize investment in American-made vessels and revive domestic shipbuilding, which has struggled to compete with China’s rapid industry growth over the past decade.
How the Shipping Fees Work
Rather than a flat rate, the new fees will be calculated based on vessel size and cargo. Chinese-owned ships will pay $50 per net ton per voyage, which will increase annually to $140 by 2028. Chinese-built ships, even if they are owned by non-Chinese companies, will pay $18 per net ton, which will also rise each year.
Container ships will face additional charges starting at $120 per container, climbing to $250 within three years. The fees will be charged once per voyage, up to five times yearly per vessel. However, smaller ships and certain short-haul routes are exempt, aiming to minimize disruptions to regional trade.
The Rationale Behind the Fees
U.S. officials argue that China’s dominant shipbuilding is built on unfair subsidies and trade practices, undermining American and international competitors. These new fees aim to discourage the reliance on ships that are built or owned by Chinese companies, instead encouraging shipping lines to invest in American-made vessels.
The administration claims this will strengthen national security, protect domestic industries, and secure critical supply chains. China controls nearly a fifth of global containers and dominates ship manufacturing, and the U.S. sees these measures as necessary for economic resilience and to rebalance the global shipping landscape.
Industry Concerns and Criticism
Shipping companies, port operators, and importers have come forward with strong criticism, warning that the new fees will increase shipping costs and disrupt trade flows. Many argue that these costs will ultimately be passed to American consumers, raising prices and risking product shortages.
Many industry groups are worried about reducing ship visits to smaller ports, which could cause congestion at major gateways and threaten local jobs. Exporters and agricultural organizations have pushed for exemptions to the new policy, but the administration has not made significant concessions. Industry leaders are concerned about the policy’s potential to disrupt established trade patterns and create disruptions in established supply chains.
Retail Price Impacts
Many retailers and analysts have predicted that the new shipping fees could drive up the cost of imported goods, especially those arriving from China. As shipping lines face higher expenses, these costs are likely to be passed down the supply chain, resulting in increased prices for electronics, apparel, furniture, and more.
Retail groups have cautioned that the feed could potentially worsen inflation, especially since consumers are already struggling with high living costs. These fees could also increase product shortages if shipping companies reroute or reduce service, making some goods less readily available in U.S. stores.
Supply Chain Disruptions
The new fees are expected to force shipping companies to reroute vessels and consolidate port calls, which could cause congestion at major U.S. ports. Smaller ports could also see fewer visits, which will affect local communities and jobs. Some shipments could even be diverted to Canadian or Mexican ports, which will increase transit times and complicate logistics for U.S. importers.
Many companies might have to adjust their supply chains and seek alternative shipping routes or even diversify their suppliers to manage higher costs and operational challenges. These disruptions could impact the availability and pricing of goods, particularly for retailers dependent on Chinese imports.
Key Exemptions and Special Cases
It is important to note that not all ships will be affected equally by the new fees. Vessels that are traveling less than 2,000 nautical miles to the U.S., like those serving the Caribbean or Great Lakes, are exempt from these fees. Bulk carriers transporting exports like coal or grain also receive exemptions.
These fees will only apply once per voyage, regardless of the number of U.S. ports they have visited. They are also limited to five voyages per year per vessel. These exemptions aim to soften the blow for certain industries and regions, but most containerized imports from China will still face increased shipping costs.
China’s Reaction
China has responded to these changes and has condemned the new U.S. shipping fees, labeling them as protectionist and harmful to global trade. Chinese officials say these measures will disrupt supply chain stability, increase global shipping costs, and contribute to inflation in the United States.
China has also threatened to retaliate with its own trade measures, which raise the risk of further escalation in the ongoing U.S.-China trade conflict. This diplomatic fallout could impact broader economic relations, adding another layer of uncertainty for businesses and consumers that are already navigating a volatile global trade environment.
Reviving U.S. Shipbuilding
The White House is hoping that these new fees will encourage shipping companies to order more American-built ships, which will support their domestic shipyards and create more job opportunities. Shipping lines are eligible for fee refunds if they invest in U.S.-built vessels within the next few years.
However, critics argue that American shipyards cannot currently meet the demand, and U.S.-built ships are significantly more expensive than the ones built by Chinese companies. It is uncertain whether these measures will effectively revive the U.S. shipbuilding industry, but the policy signals a renewed commitment to strengthening domestic manufacturing and maritime capabilities.
What Retailers and Consumers Should Expect
For now, retailers should prepare themselves for higher shipping costs, potential delays, and increased supply chain complexity. Consumers can also expect price hikes on a wide variety of imported products, particularly those sourced from China. The retail sector will need to adapt by finding alternative suppliers, adjusting inventories, and possibly passing some costs to shoppers.
While the White House’s goal is to strengthen U.S. industry, the immediate effect is likely to be more expensive goods and greater uncertainty for businesses and consumers. Both groups should prepare for a period of adjustment as the new fees take effect.
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