A consultation has been started by the US Trade Representative (USTR) into the suspension of the Section 301 penalties on China-connected shipping and logistics assets.
Following the recent trade talks between Presidents Trump and Xi, described as a “massive victory,” by the White House and which has also recently described the time so far of the second Trump Presidency as the “greatest nine months in the history of the Presidency,” Washington has announced that the United States will suspend action from one year as of 10 November 2025 (i.e. as of Monday).
Commenting on the China-US relationship, President Trump said: ““It’s like everybody else. We’re a threat to them, too… This is a very competitive world, especially when it comes to the China and the U.S. We’re always watching them and they’re always watching us. In the meantime, I think we get along very well, and I think we can be bigger, better, and stronger by working with them as opposed to just knocking them out.”
The United States will also negotiate with China about issues raised in the investigation. The USTR added that the United States will continue its domestic efforts and discussion with allies and partners on revitalising American shipbuilding.
At the direction of the President, the USTR is proposing to suspend the actions (see below) for one year and is seeking comments from any interested parties.
During the suspension, no one will accrue liability or would be required to pay fees under the USTR’s April 23 notice (as modified), nor will any party be required to pay the duties on the cranes and container equipment (below).
What was going to be charged
It all got a bit complicated but, prior to the latest announcements, the USTR was going to levy USD$50 per net ton on Chinese-owned or Chinese-operated vessels arriving a a US port and that fee would be charged up to five times a year per individual vessel; slightly different rules applied to vessels on string of US port calls. Fees were scheduled to increase each year.
China-built vessels would have had to pay the higher of one of two calculation methods – an USD$18 per net ton (increasing year-by-year) or $120 per discharged container (again increasing year by year). The fees would also be payable up to five times a year per individual vessel.
Foreign-built car carriers would have had to pay a fee of $6 per net ton.
There were also a wide range of tariffs on Chinese ship-to-shore cranes of up to 100% and tariffs of between 20% to 100% for container, chassis, and parts.
Further reading
White House commentary on economic and trade relations with China.
