US President Donald Trump signed an executive order to explore tariffs on ship-to-shore (STS) cranes and other cargo-handling equipment that are manufactured using Chinese components or by companies under significant Chinese influence.
The order aims to revitalise US shipbuilding and diminish China’s influence in the global shipping industry, reported Reuters.
It includes plans to increase financial support for shipbuilding initiatives in the future. Concerns have been raised for years by both Republican and Democratic lawmakers regarding China’s increasing maritime dominance and the decline in US naval capabilities.
Senators Mark Kelly and Todd Young expressed approval of the executive order and announced plans to reintroduce bipartisan legislation to secure congressional approvals necessary for revitalising the industry.
The directive instructs the US Trade Representative (USTR) to proceed with a proposal that would impose substantial docking fees at US ports on fleets that include vessels built or flagged by China. The order also encourages allied nations to implement similar measures.
The proposed port fees from the USTR have been met with criticism from commodities exporters, trade associations, and US shipping operators, who caution about potential disruptions to supply chains, employment losses in port areas, and rising inflation. The order is expected to be finalised by 17 April.
Furthermore, the Department of Homeland Security has been tasked with enforcing the collection of Harbor Maintenance Fees and preventing cargo carriers from avoiding these fees by routing goods through Mexico and Canada before entering the US via land routes.
US Trade Representative Jamieson Greer indicated that a decision on the final measures would be reached by mid-month, clarifying that not all proposed actions would be executed. “This could have been a miscommunication issue, some people thought that all of those measures would be imposed,” Greer noted. After reviewing feedback and public comments, “now we consider which of those measures is most appropriate.”
In response to the US order, China’s foreign ministry dismissed claims that China is responsible for the US losing its competitive edge in the shipping industry. “The development of China’s shipbuilding industry is the result of technological innovation and active participation in market competition by enterprises,” stated ministry spokesperson Lin Jian at a press briefing.
President Trump, speaking from the Oval Office, highlighted the need for significant investment in shipbuilding to restore America’s capacity in the sector. “We’re way, way, way behind,” he remarked. “We used to build a ship a day, and now we don’t do a ship a year, practically, and we have the capacity to do it.”
