U.S. Trade Representative Fee Regime
The World Shipping Council (WSC) has serious concerns regarding the fee regime announced by the U.S. Trade Representative (USTR), cautioning that the measures could undermine American trade, hurt U.S. producers, and weaken efforts to strengthen the nation’s maritime industry.
The new fee regime is an action in response to the USTR Section 301 Investigation of China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance.
WSC’s Concerns with the USTR Fee Regime:
Retroactive Port Fees: Applying fees to vessels that are already on the water offers no support for U.S. shipbuilding and, instead, risks harming American exporters — particularly farmers — at a time when global trade is facing significant strain. These backward-looking penalties disrupt long-term investment planning, introducing new costs and unpredictability for American businesses and consumers.
Fees Calculated on NT: Structuring fees based on ship size — Net Tonnage (NT) — disproportionately penalizes larger, more efficient vessels that deliver essential goods, including components used in U.S. production lines. Nearly half of all liner shipping imports to the U.S. are used directly in domestic production processes. Increasing the cost of these shipments will reverberate through the supply chain, raising production costs for American businesses and, ultimately, for consumers.
Fees on car carriers: Additionally, the USTR actions this week included a new and previously unannounced fee based on Car Equivalent Unit (CEU) capacity for almost every vehicle carrier in the world. This arbitrary action, targeting all foreign-built vessels, will further slow U.S. economic growth while doing little to encourage U.S maritime investment.
Legal and Strategic Concerns: WSC also flagged significant legal concerns, noting that the proposed fees appear to extend beyond the authority granted under U.S. trade law.
The WSC is urging the Administration to reconsider this counterproductive measure, which risks harming U.S. exporters, farmers, and manufacturers without delivering meaningful progress toward revitalizing American shipbuilding.
World Shipping Council’s Impact Analysis
The World Shipping Council has released an impact analysis of the fee regime announced by the U.S. Trade Representative. These are estimated per ship rotation.
A Call for Constructive Solutions
The World Shipping Council reaffirmed its commitment to working collaboratively with the Administration and industry stakeholders on solutions that can truly strengthen the U.S. maritime sector. Constructive pathways - such as targeted investment incentives, infrastructure improvements, and streamlined regulatory processes - can deliver lasting benefits without disrupting U.S. trade or raising costs for American producers and consumers.
It is also important to recognize that the U.S. shipbuilding sector already faces significant constraints, including a backlog of military orders and ongoing labor shortages. Similarly, a shortage of trained and certified U.S. mariners limits the potential to expand U.S.-flag shipping, even if the regulatory environment was improved.
WSC members are proud to be integral contributors to the U.S. economy and maritime community. Liner shipping moves 65% of U.S. seaborne trade, contributes more than $2 trillion annually to the U.S. economy, and supports 6.4 million American jobs paying more than $420 billion in wages. WSC members also represent 75% of the vessels enrolled in the U.S. Maritime Security Program and bring significant shipbuilding experience and expertise to the U.S. maritime sector.
“The World Shipping Council remains fully committed to supporting U.S. efforts to revitalize the American maritime industry,” Joe Kramek said. “We urge policymakers to pursue strategies that encourage growth, strengthen supply chain resilience, and avoid actions that risk harming American exporters, producers, and consumers at a time when global trade is already under pressure.”
