The U.S. Trade Representative announced actions that will be implemented in connection with its Section 301 investigation of China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance. The USTR is also seeking written comments – and will host a related public hearing on May 19, 2025 – regarding proposed additional tariffs on certain Chinese ship-to-shore cranes and other cargo handling equipment of China. Section 301 of the Trade Act of 1974 allows the U.S. government to investigate and retaliate against foreign countries that restrict U.S. commerce.
This Section 301 investigation was triggered by a March 2024 petition filed by the IBEW, Boilermakers, Steelworkers, IAM, and AFL-CIO Maritime Trades Department (collectively, petitioners) requesting that USTR initiate a Section 301 investigation of China’s targeting of the maritime, logistics, and shipbuilding sectors. The petitioners alleged that China engages in a wide range of unreasonable or discriminatory acts, policies, and practices that provide unfair advantages across shipbuilding, shipping, maritime equipment, and other maritime industries. Some examples of these “unreasonable or discriminatory acts, policies, and practices” include: (1) implementing industrial planning and policies designed to unfairly capture market share, distort global markets, and advantage Chinese enterprises; (2) directing mergers and anticompetitive activities; and (3) providing non-market advantages to Chinese firms to dominate key upstream inputs and technologies. Following its review of the petition, in January 2025 the Biden USTR determined that China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance is actionable under Section 301 and issued a report highlighting its findings.
After considering feedback received in response to a February 27, 2025 Federal Register notice and public meetings on March 24, 2025 and March 26, 2025 regarding a number of proposed retaliatory actions aimed at reducing China’s dominance in the maritime, logistics, and shipbuilding sectors, the Trump USTR has determined that appropriate actions pursuant to this Section 301 investigation include: (1) certain services fees on the maritime transport services of Chinese operators and shipowners; (2) certain services fees on non-Chinese maritime transport services of operators using Chinese-built vessels; (3) certain service fees on the maritime transport services of operators of foreign-built vehicle carriers to be applicable on a non-discriminatory basis; and (4) restrictions on certain maritime transport services for U.S. Liquified Natural Gas (LNG).
In addition to announcing that it is proceeding with the remedies described above, USTR is seeking comments on additional proposed tariffs on ship-to-shore cranes and additional cargo handling equipment from China pursuant to directives contained in President Trump’s April 9, 2025 Executive Order 14269 on “Restoring America’s Maritime Dominance.” Specifically, the USTR is seeking public input on implementing additional tariffs as follows: (1) an additional tariff between 20% and 100% on Chinese containers; (2) an additional tariff between 20% and 100% on Chinese chassis; (3) an additional tariff between 20% and 100% on Chinese chassis parts; and (4) an additional 100% tariff on Chinese ship-to-shore cranes. USTR notes that these tariff rates would be implemented in addition to duties assessed under other authorities. Additional details regarding these tariffs are included in the appendix to the Federal Register notice.
Comments on the additional proposed tariffs are due by May 19, 2025 and should be submitted through the USTR comment portal using Docket ID USTR–2025–0008. Additionally, USTR will hold a public hearing on the proposed additional tariffs May 19, 2025 at 10am ET at the International Trade Commission. Parties interested in participating in the hearing must submit a request by May 8, 2025 through the USTR comment portal using Docket ID USTR–2025–0002. Access information will be provided upon registration.