Following the public hearing held by the USTR’s Section 301 Committee, on 17 April, the USTR issued its determination regarding responsive actions pursuant to the investigation into China’s dominance in the maritime, logistics and shipbuilding sectors.

These actions, outlined in the Federal Register Notice and the Fact Sheet (attached as Annex A), are significantly modified relative to the proposals put forward by the USTR in February and, based on initial analysis, include the following key features:

· No fees will be imposed for the first 180 days (i.e. the first fees will be assessed starting 14 October 2025)

· Fees will be implemented in two phases, with the first phase commencing after 180 days:

– Rather than the previously proposed flat fees per port call, fees will apply to Chinese-owned and Chinese-operated vessels, Chinese-built vessels and foreign-built car carriers, calculated based on net tonnage per U.S. voyage, or number of containers discharged, whichever is higher, increasing incrementally over the following years.

– For Chinese-owned and operated vessels, a fee of $50 per net ton will apply from 14 October 2025, increasing up to $140 per net ton by 17 April 2028.

– For Chinese-built vessels calling at a U.S. port, a fee of $18 per net ton or $120 per discharged container, will apply from 14 October 2025, increasing up to $33 per net ton or $250 per discharged container by 17 April 2028.

– Fees will only be charged to a specific vessel up to 5 times per calendar year.

– Fees will not be cumulative as previously proposed but will only be imposed once per U.S. voyage.

– Fees will not be applied based on fleet composition as previously proposed.

– Fees will not be applied based on prospective orders of vessels being built in Chinese shipyards.

– Upon proof of order of a U.S.-built vessel, fees or restrictions on an equivalent non-U.S.-built vessel are suspended for up to three years.

– Exemptions: Fees will not be applied to Chinese-built ships engaged in short sea shipping (including Great Lakes or Caribbean shipping, and shipping to and from U.S. territories), vessels arriving empty or in ballast to the U.S., vessels with capacity equal to or below 4,000 TEU, 55,000 DWT or less, or an individual bulk capacity of 80,000 DWT or less.

· The second phase commencing after 3 years:

– Limited restrictions on transporting liquefied natural gas (LNG) via foreign vessels, increasing incrementally over 22 years.

In addition, the USTR has proposed additional tariffs on certain ship-to-shore cranes and cargo handling equipment made in China. The commentary period for these additional proposed tariffs will be open from 17 April to 18 May, and a public hearing will be held on 19 May.

Initial analysis of the USTR determination by the Chamber of Shipping of America is attached at Annex B, and a summary of responses from Chinese stakeholders is attached at Annex C.

An ICS online members briefing will be held on Friday 25 April 12:00-12:30 UK time, to discuss reflections on the determination and any relevant developments.

Members who wish to attend the briefing are advised to contact meme.lamlum@ics-shipping.org to receive a Microsoft Teams link. A summary note will be circulated for those unable to join.

SPC(25)30 -Annex A – USTR Section 301 Decision Fact Sheet

SPC(25)30 -Annex B – CSA Analysis – USTR Section 301 Determination

SPC(25)30 -Annex C – Chinese Stakeholders’ Responses to USTR Section 301 Determination