USTR’s Targeted Actions to Counter China’s Maritime Dominance

The U.S. Trade Representative (USTR) has recently unveiled a series of strategic actions aimed at countering China’s growing dominance in the maritime logistics and shipbuilding sectors. This initiative comes on the heels of a comprehensive Section 301 investigation into China’s policies and practices. These measures are part of a broader initiative spearheaded by the Trump administration, focused on rejuvenating American maritime industrial strength and enhancing economic security.

Key Findings from USTR Investigation

The Section 301 investigation revealed that China’s aggressive positioning in maritime logistics and shipbuilding is detrimental to international competitors. The USTR found that these efforts were not only unreasonable but also led to the displacement of foreign firms, limiting opportunities for market-oriented businesses and their employees. This has a cascading effect, reducing competition in the sector and increasing the U.S. economy’s dependency on China. Such practices pose significant risks to economic security and undermine supply chain resilience, which is crucial for the U.S. economy’s health and growth. For a deeper understanding of China’s strategic economic engagements amidst U.S. tariffs, you can read more here.

The investigation was extensive, lasting over a year and incorporating a public hearing along with consultations with experts and advisory committees. The findings prompted the USTR to conclude that China’s dominance not only restricts U.S. commerce but also adds a burden to American firms operating within these challenging sectors.

Phased Implementation of Responsive Measures

In response to these alarming findings, the USTR has charted out a plan to impose targeted fees on Chinese-based vessel owners and operators, which will be calculated based on net tonnage per U.S. voyage. This implementation will take place incrementally over several years. Additionally, operators of ships built in China will face fees based on the container capacity or tonnage. Special fees are also being introduced for foreign-built car carrier vessels, all aimed at incentivizing the use of U.S.-constructed ships.

To facilitate a smooth transition, the USTR has declared that for the first 180 days following the implementation of these fees, they will effectively be set at $0. This adjustment period will allow stakeholders to adapt before the fees are increased.

Executive Order: “Restoring America’s Maritime Dominance”

Complementing USTR’s initiatives, President Donald Trump signed the executive order titled “Restoring America’s Maritime Dominance” on April 9, 2025. This order launches a comprehensive Maritime Action Plan (MAP), targeting the revitalization of the U.S. shipbuilding industry, fortifying the domestic maritime workforce, and expanding America’s presence in global shipping markets.

The executive order emphasizes interagency coordination to mitigate national security risks associated with maritime logistics and shipbuilding, with particular focus on reducing reliance on Chinese entities. It also proposes tariffs on ship-to-shore cranes and cargo handling equipment related to Chinese markets. Notably, the order does not implement immediate docking fees on Chinese-built vessels but instructs the USTR to continue investigations to refine these measures, ensuring non-Chinese owned ship operators are not inadvertently penalized.

Broader Implications and Industry Impact

The USTR and associated agencies are working closely with the U.S. Congress, treaty allies, and the maritime industry to build a unified strategy that not only supports domestic shipbuilding efforts but also acts as a deterrent against Chinese market encroachment.

The anticipated fees and tariffs are expected to considerably impact operational costs for maritime trade routes involving Chinese-built and operated vessels. However, these initiatives align with the broader goal of encouraging investment in U.S. maritime infrastructure, fostering workforce development, and enhancing overall supply chain resilience. A Maritime Security Trust Fund and the establishment of Maritime Prosperity Zones are projected to be integral components of this endeavor to revitalize the American maritime sector.

In conclusion, the USTR’s targeted actions, buttressed by the recent executive order, illustrate a unified and multi-phased strategy aimed at counterbalancing China’s maritime dominance. Through the imposition of fees, tariffs, policy developments, and support measures for industry stakeholders, these efforts signify a substantial shift in U.S. trade and industrial policy focused on bolstering national security and economic resilience. For context on China’s market maneuvers relevant to these actions, check out more here.