On April 17, 2024, the Office of the U.S. Trade Representative (USTR) initiated a Section 301 of the Trade Act of 1974 investigation into China’s policies around shipbuilding, maritime and logistics in response to a petition filed by five national labor unions. The petitioners argued that China’s “discriminatory” policies “have created global overcapacity in the shipbuilding sector, depressed global prices, and reduced domestic production and employment across shipbuilding and the shipbuilding supply chain.”  

In January 2025, USTR released its report having determined that China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance is unreasonable and burdens or restricts U.S. commerce.  

Following the report, USTR proposed taking action in a “Request for comments and notice of public hearing” by imposing new port charges up to $1 million per U.S. port call for Chinese-operated vessels and up to $1.5 million per port call for Chinese-built vessels.  

On April 17, 2025, after a notice and comment period, USTR published a Notice of Action covering its final recommendations for responding to China’s efforts in targeting the shipbuilding and maritime sector. USTR made significant changes from their initial proposed actions. The final recommended actions involve two phases with the first including a set of fees on certain vessel owners and operators and car carrier vessels, which will take effect in 180 days. The second phase, effective in 2028, is aimed at incentivizing U.S.-built liquid natural gas (LNG) vessels.  

Download the full brief HERE.