Following a USTR investigation, the Trump administration announced fees on Chinese-built vessels entering U.S. ports, citing unfair competitive advantages held by China’s shipbuilding industry. Initially proposed as a per-port fee potentially reaching $1.5 million, the final structure involves per-ton fees escalating over several years, starting at $0 and reaching $140 per net ton for Chinese-owned vessels by 2028. Lower fees apply to non-Chinese-owned vessels carrying Chinese-built ships, and the fees are remittable if operators order U.S.-built vessels. Exemptions exist for certain cargo types and regions.
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Hong Kong’s postal service will cease handling US-bound and US-origin packages, a direct response to the US eliminating the $800 de minimis exemption for goods shipped from Hong Kong. This action, effective immediately for sea freight and April 27th for air freight, forces Hong Kong residents and businesses to utilize private couriers like FedEx and DHL, significantly increasing shipping costs. The Hong Kong government cited President Trump’s decision as unreasonable and abusive, highlighting the escalating trade tensions between the US and China. The move impacts packages only; documents remain unaffected.
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Proposed U.S. penalties on Chinese-built container ships, aiming to boost domestic shipbuilding, face strong opposition from various sectors. These fees, impacting nearly all global container vessels, could significantly increase shipping costs, harming U.S. farmers and businesses due to higher export prices and reduced port calls. The economic impact analysis suggests the penalties would outweigh any benefits to the U.S. shipbuilding industry, potentially decreasing U.S. output and worsening the trade deficit. Opponents argue a more constructive, forward-looking strategy is needed to revitalize the U.S. maritime industry instead of imposing these potentially crippling fees.
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John Q. Hosedrinker