** * The new proposal includes a $1 million per U.S. port call fee on Chinese vessel operators and a $1.5 million fee per U.S. port call for Chinese-built vessels. A service fee would be instituted on each U.S. port call by vessel operators, regardless of their nationality or vessel flag, with vessels on order from Chinese shipyards.**
I think Steve has it right. They are trying to drive us into recession. Early in the administration it might be a good idea as long as they can get us out by the next Presidential election
What an idiot. Easy for China to respond with any port call OR rail OR air fee of US $5-million for any/all products from a US company/subsidiary/etc anywhere in the world outside China. So, the US companies (and their overseas subsidiaries) lose access to the China market unless they produce the goods in China.
So…China trades with the rest of the world, which is bigger than Shiny-land. How about Chinese goods being offloaded in other ports, and shipped to the US by rail?
Depends how the tariffs are applied. If the tariffs are on goods “Made in China”, then the route taken to the US is irrelevant (one shipment direct to the US or if transshipped at some other point). The tariff is on the goods, not the method/path of getting from China to the US.
This should not surprise anyone. We were promised two years of pain before the election. Not only are they trying to drive us into a recession, they flat told us they would do that. Half the country didn’t care. Give them what they voted for.
As I read this, the tariff on the goods is assessed, and the fees are charged based on the ship the goods are on, and who owns the ship. Take the ship out of the equation, by docking in Vancouver, or anywhere in Central America, and only the tariff on the goods is charged when it crosses the border. Of put the stuff on a ship registered in Panama, or Liberia, or Nam.
Ship buyers determine what they want built, and from whom. Why pay more and not get more? All costs get passed on to whoever charters the ship, not the ship owner(s).
Yep. Users pay more to dock a ship made in China. What is the net result? Maybe choose a different ship? Or ship company eats the docking fee to remain competitive.
Won’t happen. Profit over all other options. If the group chartering the vessel refuse to pay, there will be no ship to carry the goods. If the goods are already loaded and in transit for delivery, refusing to pay would cause the ship owner to sell the goods to cover all shipping costs and the shipper does not get paid because their customer did not receive the goods ordered.
Correct–IF there is a non-Chinese ship available. Reason? They can charge more (say $500k) and still be under the $1-million premium/penalty imposed for using a Chinese-built ship to make delivery.
China could do a lot worse to us. China has 5500 flagged ships that transport goods around the world. The USA has 80. If China wanted to, they could shut down the US economy in a matter of weeks.
Trump hails $20 billion investment by shipping firm CMA CGM https://www.reuters.com/business/trump-hails-20-bln-investment-by-shipping-firm-cma-cgm-2025-03-06/ U.S. President Donald Trump on Thursday said French-based shipping firm CMA CGM would invest $20 billion in the United States to build out shipping logistics and terminals. The Trump administration wants to revive shipbuilding in the United States and weaken China’s grip on the sector. The president’s team is preparing an executive order that would impose a levy on ships linked to China when they call at U.S. ports, and wants U.S. allies to do the same.
CMA CGM is the world’s third-largest container shipping line and is part of a vessel-sharing alliance with companies including China’s COSCO…
CMA CGM CEO Rodolphe Saade, who joined Trump in the Oval Office, confirmed the $20 billion investment and said it would create 10,000 jobs. The $20 billion investment over four years would include expansion of container ports and the creation of an air cargo hub in Chicago supported by five new Boeing 777 freighters…The company also plans to raise the number of its vessels flying the U.S. flag to 30 from 10 currently
What sort of “arty” deal is he offering our allies to enforce his policy? He wants to be transactional, about everything. OK, Shiny-land, what will you pay?
I fear this may just be a lot of smoke and mirrors. A pledge is not a contract. The US does not have the facilities available to build such ships any time soon and certainly can’t do it at anywhere near the cost of Chinese shipbuilders.
There is one cruise ship operating in the Hawaiian Islands, that is Jones Act compliant. The hull was built in the US, then it was towed to Germany for fitting out. I would expect similar sleight of hand on future ships to reduce cost.