As the 2024 US election approaches, the Trump administration has announced a controversial new policy that could further strain relations between the United States and China. The administration plans to impose fees on Chinese-built ships that dock in US ports, marking a significant escalation in the ongoing trade tensions between these two global superpowers.

Late on Thursday, US trade officials revealed detailed plans to gradually introduce substantial charges on vessels owned or constructed in China that transport cargo to American shores. This strategy is part of a broader initiative aimed at pressuring China to alter what Washington perceives as unfair trade practices while simultaneously promoting domestic shipbuilding.

However, this new fee structure has sparked concern among US exporters, particularly within the agricultural sector. Many farmers are worried that the punitive nature of these charges could hinder their ability to export goods effectively. They fear that shipping companies may opt to minimize costs by reducing the number of American ports they service, ultimately limiting access to international markets for US-grown products.

Jamieson Greer, who serves as the trade representative for former President Donald Trump, stated that the US will impose a charge of $50 per net ton on Chinese vessel owners and operators within 180 days of the announcement. This fee is set to escalate by an additional $30 per net ton over the following three years. Notably, operators of ships built in China will be subject to a reduced fee.

Ships and shipping are vital to American economic security and the free flow of commerce, Greer emphasized in his statement. He further articulated the administrations objectives, asserting that these actions are designed to counteract Chinese dominance in maritime trade, address vulnerabilities in the US supply chain, and stimulate demand for ships constructed within the United States.

In addition to the planned fees, the administration will implement limited restrictions on foreign vessels transporting liquefied natural gas (LNG). However, these restrictions are expected to be phased in over a three-year period and will gradually increase over an extended timeline of 22 years, as outlined by Greer's office.

The fee system will be structured based on the total number of voyages to the US rather than applying charges for each individual port visited during a single trip. This approach aims to alleviate concerns that shipping companies might bypass smaller American ports, which could inadvertently harm US exporters relying on those routes.

Moreover, it has been clarified that empty ships arriving in the United States to pick up goods for export will not incur any fees, a provision that may provide some relief to exporters looking to facilitate international trade.