There’s turmoil at sea as Washington and Beijing continue to spar on trade-related issues, the latest being additional port fees charged on each other’s vessels on sea.
China said it had started to collect special charges on US-owned, operated, built, or flagged vessels, but exempted Chinese-built ships from the levies.
The country’s state broadcaster said China had spelled out specific provisions on exemptions, which include empty ships entering Chinese shipyards for repair, but include extra port fees at the first port of entry on a single voyage or for the first five voyages within a year, following an annual billing cycle that began on April 17.
The additional fees will be levied on ocean shipping firms moving everything from toys and cars to crude oil.
Earlier this year, US President Donald Trump’s administration announced plans to levy fees on China-linked ships in a bid to weaken the country’s grip on global maritime industry and large export basket.
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Last weeks, trade tensions between two of the world’s largest economies took a downturn after China announced increased controls of its rare earths exports, followed by Trump’s threats to increase tariffs on Chinese goods by an extra 100 per cent from November 1, 2025, or earlier.
While China has hit back with its own port fees on US-linked vessels from the same day the US fees took effect, its commerce ministry had urged the US to “rectify its erroneous practices”, and pursue dialogue instead of confrontation.
"If the US chooses confrontation, China will see it through to the end; if it chooses dialogue, China's door remains open," it said.
Additionally, Beijing also imposed sanctions on Tuesday against five US-linked subsidiaries of South Korean shipbuilder, Hanwha Ocean, on grounds that it “assisted and supported” a US probe into Chinese trade practices.
Hanwha told a leading news agency it is aware of the announcement and closely reviewing the potential business impact on the company.
China also launched an investigation into how the US probe affected its shipping and shipbuilding industries.
Previously, under the former US President Joe Biden’s administration had carried out investigations that concluded China used unfair policies and practices to dominate the global maritime, logistics, and shipbuilding sectors, clearing the way for the port penalties that Trump’s administration has now imposed.
Trade analysts say the new fees may not be very disruptive to the industry, and rising costs would probably be met by higher prices.
Meanwhile, China-owned container carrier COSCO will likely be most impacted, shouldering nearly half of that segment’s expected $3.2 billion cost from the increased fees in 2026.
Besides China’s control of rare earths, its support of United Nations’ International Maritime Organisation (IMO) plan, which aims to reduce planet-warming greenhouse gas emissions from ocean shipping, is also a bone of contention between the US and China, with the US issuing a warning that countries voting in favour of the plan could face sanctions, port bans, or punitive vessel charges.
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