The US and China on Tuesday started charging additional port fees on ships bound for each other’s country as the trade war between the world’s two largest economies escalates into the high seas.
The U.S. Trump administration announced earlier this year it would impose tariffs on ships linked to China, prompting Beijing to announce a reciprocal move last week.
What are the port charges?
China has said special duties will be imposed on US-owned, operated, built or flagged ships but Chinese-built ships will be exempted.
Another exemption will be on empty ships going to Chinese shipyards for repairs, according to a report by state broadcaster CCTV.
The additional port charges charged by China are to be collected at the first port of entry on a voyage or for the first five voyages within a year, with the billing cycle starting from April 17.
US investigation reveals inappropriate behavior by China
The move by Washington to impose tariffs on Chinese-linked shipping came after an investigation by President Joe Biden’s previous administration concluded that China’s dominance of the global maritime, logistics and shipbuilding sectors was due to unfair policies and practices.
Analysts say China-owned container carrier COSCO is likely to be hardest hit by the new fees, which are expected to cost $3.2 billion (€2.8 billion) in 2026.
The tariffs at the port came as the trade war between the US and China escalated on Friday, with US President Donald Trump threatening to impose new 100% tariffs on goods from China in return for China cutting exports of critical minerals.
Trump also threatened to impose export controls on “any and all critical software” by November 1.
Edited by: Wesley Rahn