The United States and China on Tuesday began charging additional port fees on ocean shipping firms that move everything from holiday toys to crude oil, making the high seas a key front in the trade war between the world’s two largest economies.

A return to an all-out trade war appeared imminent last week, after China announced a major expansion of its rare earths export controls and President Donald Trump threatened to raise tariffs on Chinese goods to triple-digits.

But after the weekend, both sides sought to reassure traders and investors, highlighting cooperation between their negotiating teams and the possibility they could find a way forward

China said it had started to collect the special charges on U.S.-owned, operated, built, or flagged vessels but clarified that Chinese-built ships would be exempted from the levies.

In details published by state broadcaster CCTV, China spelled out specific provisions on exemptions, which also include empty ships entering Chinese shipyards for repair.

The China-imposed extra port fees would be collected at the first port of entry on a single voyage or for the first five voyages within a year, following an annual billing cycle beginning on April 17.

Early this year, U.S. President Donald Trump’s administration announced plans to levy the fees on China-linked ships to loosen the country’s grip on the global maritime industry and bolster U.S. shipbuilding.

An investigation during former President Joe Biden’s administration concluded China uses unfair policies and practices to dominate the global maritime, logistics and shipbuilding sectors, clearing the way for those penalties.

China hit back last week, saying it would impose its own port fees on U.S.-linked vessels from the same day the U.S. fees took effect.

Analysts expect China-owned container carrier COSCO to be most affected, shouldering nearly half of that segment’s expected $3.2 billion cost from those fees in 2026.

Its commerce ministry on Tuesday urged the U.S. to “rectify its erroneous practices”, and pursue dialogue and consultation instead.
“If the U.S. chooses confrontation, China will see it through to the end; if it chooses dialogue, China’s door remains open,” it said.

In a related move, Beijing also imposed sanctions on Tuesday against five U.S.-linked subsidiaries of South Korean shipbuilder Hanwha Ocean which it said had “assisted and supported” a U.S. probe into Chinese trade practices.

Hanwha said in a message to Reuters it is aware of the announcement and is closely reviewing the potential business impact on the company. Hanwha Ocean’s shares sank nearly 6%.
Source: Reuters