US begins charging Chinese ships to dock at ports

Trump’s administration imposed docking fees on Chinese ships Tuesday, targeting Beijing’s subsidized shipbuilding dominance. Stemming from a Biden-era probe, fees hit Chinese-owned vessels hardest; non-Chinese lines pay for Chinese-built ships, spurring fleet rerouting.

China’s Transport Ministry vowed Friday to levy fees on US vessels, amid Beijing’s rare earth curbs and Trump’s tariff threats, later moderated. Mihir Torsekar of the Coalition for a Prosperous America supports the policy: “Anything we can do to chip away at the disparity in shipbuilding that exists between the United States and China is to our benefit.”

In 2024, China built 60% of global large vessels—717 total—versus one US-built, per BRS Shipbrokers. American ships cost five times Asia’s. Fees could cripple COSCO, with HSBC estimating $1.5 billion in 2025 levies, slashing 2026 earnings by 75%. COSCO warned in April the fees “risk undermining the security, resilience, and orderly operation of global industrial and supply chains.”

Non-Chinese firms like MSC, ordering 12 Chinese vessels in 2024, face trade-offs, as Matthew Funaiole notes: buyers get “a quality ship at a low cost in a quick turn time.” Cato’s Colin Grabow predicts higher import costs: “The inefficiencies, along with whatever fees are paid, will raise costs.”

Car carrier fees may raise vehicle prices. Hanwha’s $100 million Philadelphia yard buy drew China’s sanctions on five Hanwha units, tanking Hanwha Ocean shares 8%.