Washington "The fresh thought of imposing advanced charges on Chinese-related ships that call on US ports has sparked a sharp dispute between politicians and maritime industry, exporters and farmers. Although the initiative is intended to strengthen the American shipbuilding industry, entrepreneurs inform that its effects will impact the American economy, increase costs for consumers and weaken US competitiveness in the global market.
Political decision, economical consequences
The proposal, supported by both parties in Congress, assumes the imposition of fees reaching even $1.5 million for ships manufactured in China or owned by Chinese companies. Administration of the president Donald Trump, continuing the action initiated in Joe Bidena, argues that Chinese subsidies to shipyards distort competition and endanger US national security.
– “The collapse of the American shipbuilding manufacture is not a consequence of the free market, but of China's targeted strategy to dominate the key sector” – said John Moolenaar, Republican talker of the home of Representatives for China. His fellow politician Raja Krishnamoorthiadded: “It is no coincidence that China controls half of the planet shipbuilding marketplace today. We must act.”
Business alarms: “It will kill us”
However, representatives of American companies say the proposal will hit them more than China.
– “If we knew that the decision to usage Chinese ships would be a death conviction for our company, we would make another choices. But we acted in good faith” – said Duncan Wright from the logistics company UWL, Inc. In his opinion, fees will be “catastrophic”.
Daniel Blazer, the owner of planet Direct Shipping, warned that his company, which transports goods between the US and Mexico, would endure massive losses. – “Two of our 3 units are from China. We will either pay gigantic fees or replace the ships – this is simply a financial blow” – he spoke during the proceeding before the officials.
Effects on exports and supply chains
Entrepreneurs point out that the fee appears at the worst possible time – erstwhile non-Chinese alternate vessels are hard to reach.
– “We already see how the marketplace reacts: bookings to the US are falling, transport prices are rising” – wrote in a letter to Washington Augusto Bassanini, president of United Grain Corporation. In his opinion, sea freight costs increased by 40%What's going to hit American farmers.
The coal manufacture has akin concerns. – “This will kill coal exports from the US. Australia and another competitors are just waiting to take over our markets" – said Emily Arthun from the American Coal Council.
Will the charge halt the goods from China?
Some groups, specified as the global Union of Dokers (ILWU), request that charges be extended besides to goods carried by land from Mexico and Canada to avoid circumvention of fresh regulations.
– “We must block the anticipation of redirecting loads by neighbors” said Dan McKisson from ILWU.
Meanwhile, as the U.S. Trade typical (USR) informs, the following criminal charges in US ports are proposed:
Ship of Chinese shipowner – $1 million;
A non-Chinese shipowner utilizing Chinese ships — between $0.5 million and $1.5 million;
A German shipowner who builds more than 50% of fresh ships in China – an additional $1 million;
USTR draws attention to 15 Aprilthen decide whether to introduce charges. However, it can already be seen that a political decision can have far-reaching economical consequences.
Source:
- South China Morning Post
- Hearings before USR (20-21.03.2025)
- Industrial letters to the U.S. Trade Authority
Leszek B. Glass
Email: [email protected]
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