US and China introduce mutual port fees: maritime trade at risk of escalation

The United States and China have begun imposing additional port fees on shipping companies that transport everything from holiday toys to crude oil, making the high seas a key front in a trade war between the world’s two largest economies.

The move was a de facto tit-for-tat symmetric response and capped a week of escalation that included China’s expansion of controls on rare earth elements exports and U.S. President Donald Trump’s threat to raise tariffs to 100%.

While both sides have sought to calm markets by emphasizing the possibility of dialogue, the new fees signal an escalation, Reuters reported.

China has begun imposing special fees on ships owned, operated, built or flying its flag in the United States. The exceptions are Chinese-made ships and empty ships arriving at Chinese shipyards for repairs.

The fees will be levied at the first port of entry for a single voyage or for the first five voyages within a year.

The Commerce Department on Tuesday urged the United States to “correct its wrong practices” and instead pursue dialogue and consultation.

“If the United States chooses confrontation, China will see it through to the end; if it chooses dialogue, China’s door remains open,” it said.

In a related development, Beijing also imposed sanctions on five subsidiaries of South Korean shipbuilder Hanwha Ocean, accusing them of supporting a U.S. investigation into Chinese trade practices.

The U.S. administration announced plans to impose tariffs on ships linked to China after an investigation found Beijing was using unfair policies to dominate the global maritime and shipbuilding sectors.

Chinese container carrier COSCO is expected to be hit the hardest, shouldering almost half of the expected $3.2 billion in costs in 2026.

Analysts warn that this “tax symmetry” risks distorting global cargo flows. The levies could affect 13% of crude oil tankers and 11% of container ships in the global fleet.

US-China tensions

US President Donald Trump has announced additional tariffs of 100% on China and export controls on critical software. He said China has taken an “extremely aggressive stance on trade.”

Meanwhile, China’s Ministry of Transport announced that starting October 14, ships owned or operated by American companies, and those built in America or flying the US flag, will be subject to an additional port fee for each voyage.

Beijing has also tightened controls on the export of rare earth elements, which are crucial to some US industries.

Tags: China, USA