---
title: USTR Proposes Fees of up to $1.5 Million on Chinese Ships Entering U.S. Ports
description: The USTR is proposing significant fees for Chinese ships entering U.S. ports, which could go up to $1.5 million per vessel.
image: https://blog.coleintl.com/hubfs/Images/Trade%20News%20pictures/Freight-3.png
---
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# USTR Proposes Fees of up to $1.5 Million on Chinese Ships Entering U.S. Ports
Trade Update: February 26,2025
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USTR Proposes Fees of up to $1.5 Million on Chinese Ships Entering U.S. Ports
5:36
**The move to increase fees will determine how North American trade routes evolve and whether U.S. importers will need to make adjustments to their supply chains.**
The U.S. Trade Representative (USTR) has introduced a proposal to impose significant fees on Chinese ships entering American ports. These fees would apply to Chinese-built and operated vessels.
According to the proposal, non-Chinese maritime transport operators using Chinese-built ships could be [charged up to $1.5 million per entry](https://www.reuters.com/markets/commodities/ustr-proposes-charging-chinese-ships-up-15-million-enter-us-ports-2025-02-24/).
Operators with fleets consisting of more than 50% Chinese-built vessels would be charged $1 million per vessel entry, regardless of the ship’s country of origin.
The fee would be $750,000 per entry for fleets with 25% to 50% Chinese-built vessels, while those with less than 25% Chinese-built ships would pay $500,000 per entry.
This measure is designed to counter China’s dominance in global shipbuilding and maritime logistics, which U.S. officials argue gives Chinese firms an unfair advantage.
Right now, [China controls 95% of shipping container production](https://think.ing.com/articles/us-attempts-to-curb-china-dominance-in-shipping-actions-could-backfire/) and 86% of the global supply of intermodal chassis.
However, this move raises concerns about its impact on shipping costs and the dynamics of the North American supply chain, with Canada and Mexico emerging as potential alternatives for Chinese ships.
The USTR has scheduled a public hearing on March 24 to assess industry concerns and economic impact. Business leaders, logistics experts, and trade representatives are expected to provide input on the policy's feasibility and consequences.
The outcome of this hearing will help determine whether the U.S. proceeds with full implementation or makes adjustments to minimize trade disruptions.
## **New maritime strategies against Chinese shipping dominance**
The USTR had launched an investigation in April 2024 in response to concerns from five national labour unions about China’s increasing control over the global shipbuilding industry.
The investigation found that China’s extensive state subsidies and government-backed policies have enabled the country to grow its shipbuilding market share [from just 5% in 1999 to over 50% in 2023](https://ustr.gov/sites/default/files/files/Press/Releases/2025/Ships%20Proposed%20Action%20FRN.pdf).
Imposing entry fees on Chinese ships is just one measure the U.S. seeks to make to counter this Chinese dominance.
The proposed fees would be tiered based on the percentage of Chinese-built vessels within a company’s fleet, with higher penalties for fleets that rely more heavily on Chinese construction.
Moreover, the U.S. government is exploring potential incentives for companies using U.S.-built vessels in international shipping, with refunds of up to $1 million per port entry on a calendar year basis.
Another proposed measure is to boost the competitiveness of the U.S. maritime sector by gradually requiring that a growing percentage of U.S. exports be transported on U.S.-flagged and U.S.-built vessels. This would start at 1% and increase to 15% over seven years.
Additionally, the USTR is considering restrictions on China’s access to U.S. shipping data by limiting the use of the Chinese National Transportation and Logistics Public Information Platform, LOGINK, in U.S. ports.
This also includes banning or continuing to ban terminals at U.S. ports from using this platform.
These measures aim to limit China’s influence in global shipping infrastructure and strengthen national security in maritime trade.
## **Canadian ports could become an alternative for U.S.-bound cargo**
With the steep new fees increasing the cost of U.S. port calls for Chinese ships, industry experts predict a shift in trade routes. Canada stands as one option.
Canadian ports, particularly Vancouver and Prince Rupert, are [well-positioned to absorb diverted cargo](https://www.freightwaves.com/news/new-u-s-fees-on-chinese-ships-may-drive-demand-for-canadian-intermodal-rail)because of their strong intermodal rail connections that would allow goods to enter the U.S. market without incurring the newly proposed fees.
Consequently, Canadian National (CN) and Canadian Pacific Kansas City (CPKC) rail networks could see a significant rise in demand as importers seek alternative, cost-effective shipping solutions.
## **Fees on Chinese ships could affect U.S.-Mexico trade**
The proposal to impose these substantial fees on Chinese ships entering American ports could [impact trade relations between the United States and Mexico](https://www.freightwaves.com/news/trumps-proposed-fees-on-chinese-ships-could-hinder-us-mexico-trade).
To avoid paying steep fees, industry experts suggest that shipping companies may reroute Chinese ships to Mexican ports and then transport goods into the U.S. via land routes.
However, this strategy could increase congestion at Mexican seaports and put additional strain on overland transportation networks, which could potentially disrupt cross-border trade efficiency.
Moreover, the shift may require enhancements to Mexican port infrastructure to handle the increased cargo volume.
The financial burden could also result in higher costs for businesses and consumers.
According to a report from Amsterdam-based ING Wholesale Banking, “a significant portion of imports entering the U.S. via ports [would be directly subject to hefty fines](https://think.ing.com/articles/us-attempts-to-curb-china-dominance-in-shipping-actions-could-backfire/), as these additional expenses would likely be passed on from the carrier to shippers and, ultimately, to importers and exporters.”
**For more information about this proposed policy and its potential impact on your U.S. imports, please reach out to one of [our trade professionals](https://www.coleintl.com/contact-us).**
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