On April 17, 2025, the Office of the U.S. Trade Representative (USTR) announced targeted actions “to restore American shipbuilding” after its determination that China was implementing “unreasonable acts, policies, and practices to dominate the maritime, logistics, and shipbuilding sectors.” Although the specific details of the targeted actions differ from USTR’s proposed actions (see Update of February 26, 2025), the targeted actions remain largely consistent with the USTR’s proposals. Unlike the proposals, however, the targeted actions propose additional duties on Ship-to-Shore (STS) cranes and cargo handling equipment from China.
According to the Federal Register notice, certain Chinese vessels will soon incur a service fee that increases over five phases:
Phase | Service Fee on Vessel Operators and Vessel Owners of China (see Annex I) | Service Fee on Vessel Operators of Chinese-Built Vessels (see Annex II) |
| Phase I (April 17–Oct. 13, 2025) | $0 | Either $0 per net ton for the arriving vessel or $0 for each container discharged |
| Phase II (Oct. 14, 2025–April 16, 2026) | $50 per net ton for the arriving vessel | Either $18 per net ton for the arriving vessel or $120 for each container discharged |
| Phase III (April 17, 2026–April 16, 2027) | $80 per net ton for the arriving vessel | Either $23 per net ton for the arriving vessel or $153 for each container discharged |
| Phase IV (April 17, 2027–April 16, 2028) | $110 per net ton for the arriving vessel | Either $28 per net ton for the arriving vessel or $195 for each container discharged |
| Phase V (April 17, 2028–onwards) | $140 per net ton for the arriving vessel | Either $33 per net ton for the arriving vessel or $250 for each container discharged |
To promote U.S.-built vessels, the Federal Register notice includes a new “Service Fee on Vessel Operators of Foreign-Built Vehicle Carriers” (see Annex III). Like the service fees on Chinese vessels, this service fee does not take effect until October 14, 2025, when a fee of $150 per Car Equivalent Unit (CEU) capacity will be assessed on each entering non-U.S.-built vessel.
To “promote the transport of U.S. goods on U.S. vessels,” the USTR will also require that a certain percentage of liquified natural gas (LNG) exports to the United States be transported exclusively on U.S. vessels, but this requirement does not begin until April 17, 2028 (see Annex IV). The requirement starts at 1% but gradually increases to 15% by April 17, 2047.
Request for Public Comments on Proposed Additional Duties
Consistent with Executive Order 14269 of April 9, 2025 (“Restoring America’s Maritime Dominance”), the Federal Register notice proposes additional duties on STS cranes and cargo handling equipment of China to 100% (see Annex V). For all these proposed tariff actions, the USTR is requesting public comments from interested parties. Any comments must be submitted no later than May 19, 2025, via the USTR’s electronic portal: https://comments.ustr.gov/s/. The docket number for written comments is USTR–2025–0008.
On May 19, 2025—the same day public comments are due—the USTR will hold a public hearing on the proposed tariff actions in the main hearing room of the U.S. International Trade Commission. Any request to appear at this hearing must be submitted no later than May 8, 2025, via the same USTR portal under docket number USTR–2025–0009. Requests to appear must include a summary of testimony and may be accompanied by a pre-hearing submission. Remarks at the hearing are limited to five minutes.
Background of the Section 301 Investigation
The USTR’s targeted actions follow a year-long Section 301 investigation that concluded China’s behavior was “actionable” (see Update of January 17, 2025). Section 301 allows the United States to respond to unreasonable or discriminatory foreign government practices that burden or restrict U.S. commerce. For additional background on the Section 301 investigation, see Bulletin of April 23, 2024 and Update of April 17, 2024 (detailing the initiation of the Section 301 investigation), and Update of March 13, 2024 (detailing the petition filed requesting the Section 301 investigation).