Escalating Trade Tensions: US and China Impose Port Fees Amid Rare Earth Export Controls

Strategic Insights -

Tensions between the US and China have soared in recent days, as both nations have imposed additional port fees on shipping vessels amidst a backdrop of rare earth export controls and heightened trade restrictions. A White House executive order has directed the US Trade Representative (USTR) to impose charges on owners and operators of Chinese-built, owned, or operated vessels entering the US by October 14, aiming to loosen China's grip on maritime dominance. In retaliation, China has announced its own port fees on US-owned, operated, built, or flagged vessels, set to take effect on the same day.

Key Takeaways:

  • The US has imposed a $50 per net ton fee on Chinese-owned or operated vessels arriving at a US port, increasing to $140 by April 2028, while vessels of Chinese-built vessels will pay $18 per net ton or $120 per container, rising to $33 and $250, respectively, by 2028.
  • China has retaliated with a 400 yuan ($56) per net ton fee for US-owned, operated, built, or flagged vessels, increasing to 1,120 yuan ($157) per net ton.
  • The fees for both sides will be charged for a maximum of five trips per year, causing disruptions to global trade operations.
  • Chinese container carrier COSCO could bear the most burden from the US fees, expected to cost the industry $3.2bn.
  • The US and China have imposed a range of trade curbs, including rare earth export controls, with US President Trump threatening to raise tariffs on Chinese goods to 100 percent.

Statistics:

  • China dominates the global commercial shipbuilding industry, accounting for 53% of commercial ships built in 2024, while the US produced only 0.1% of such vessels (Center for Strategic and International Studies).
  • Chinese state-owned China State Shipbuilding Corporation (CSSC) built more commercial vessels by tonnage in 2024 than all of the US shipbuilders have done since 1945 (Center for Strategic and International Studies).
  • The US has a stronger navy in terms of firepower, but China's shipbuilding dominance has raised security concerns in Washington (US Department of Defense report).
  • US trade unions petitioned the USTR for relief against China's "unreasonable" practices in the maritime and shipbuilding sector (May 2024).
  • In July 2025, the US launched an investigation into Chinese shipping trade practices under the Joe Biden administration (USTR).

Sources:

  • "US to impose port fees on Chinese-owned ships" by Reuters (October 12, 2025).
  • "China imposes sanctions on US-linked shipbuilder Hanwha Ocean" by Reuters (October 12, 2025).
  • "US trade unions petition USTR for relief against China's maritime and shipbuilding practices" (May 2024).
  • "US Department of Defense report on China's naval fleet" (2020).
  • "Center for Strategic and International Studies report on global commercial shipbuilding industry" (2024).
  • "USTR investigation into Chinese shipping trade practices" (July 2025).
  • "US Trade Representative (USTR) Executive Order 14269" (April 2025).
  • "China's Ministry of Commerce statement on US-China trade tensions" (October 10, 2025).