Donald Trump's administration, aiming to rebuild the American shipbuilding industry, proposed additional duties on Chinese port cranes and ships. However, manufacture officials inform that specified actions can have an other effect – paralyze port operation and hit the American economy.
100% work on Chinese cranes – “destroying effects”
During a public proceeding organised by the Office of the U.S. Trade Plenipotentiary (USR), proposals for the imposition were discussed 100% duties on handling cranes (STS) and 20-100% tariff for containers, chassis and spare parts. Port representatives and transport companies objected to the deficiency of US producers capable of replacing Chinese suppliers.
– “There are no American manufacturers of STS cranes. They have not been there since at least the 1980s.” said Cary Davis, president of the American Association of Port Authorities (AAPA), representing 81 public ports. He added that outside China, only 3 companies in the planet produce specified machines: nipponese Mitsui E&S and European Konecranes and Liebherr, but “None of them has the capacity to meet demand”.
“270% duty? This is simply a disaster”
One of the most affected ports may be Port Houston, who ordered 8 cranes in China in July 2024, with a planned transportation in the spring of 2026. If Trump's proposals come into force, the full work on these machines will be 270%which translates into extra USD 302,4 million costs.
– “This would be devastating for our investment capacity, future handling of goods and jobs in our region and throughout the country” The port president, Charlie Jenkins, alarmed.
A contradiction to trade negotiations?
Kathy Metcalf, president of the U.S. National Shipping Chamber, pointed out that the fresh duties contradict the ongoing trade talks between the US and China.
– “In the face of fresh productive talks in Geneva, the imposition of duties on cranes which are crucial for the transport of goods is an action contrary to the interests of both parties” – she said.
What's next?
Trump's administration defends its policy, claiming that the nonsubjective is “Restore production to the USA”. However, without support in the form of taxation reductions for home producers, as indicated by AAPA, US ports may stay dependent on importand fresh tariffs will only rise costs and endanger the stableness of supply chains.
Source:
- USTR dues on Chinese cranes would devastate US ports, manufacture says – [original text]
- Statements by representatives of AAPA, Port Houston and the US National Chamber of Shipping (CSA)
- Public proceeding organised by USR
Leszek B. Glass
Email: [email protected]
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