Section 301 Investigation of China's Maritime, Logistics & Shipbuilding Sectors

On April 23, 2025, USTR announced the following measures as a result of the Section 301 investigation into China's maritime, logistics, and shipbuilding sectors. Note that these actions differ in some significant respects from those proposed by USTR in February 2025.

New! On June 12, 2025, USTR requested written comments, due by July 7, regarding modifying the current actions as follows: 

• for Annex III, providing for a targeted coverage provision pertaining to vessels in the Maritime Security Program and changing the basis of the fee to net tons; and
• for Annex IV, eliminating paragraph (j), retroactive to April 17, 2025, under which USTR may direct the suspension of LNG export licenses until the terms of paragraph (f) of this Annex are met. USTR also seeks comments on changing the data reporting requirements in paragraph (k) and applying Annex IV restrictions to vessel owners or operators.

ST&R offers a three-pronged approach to avoiding, mitigating, and/or recovering these and other tariffs on imported goods. For more information on the impact of the new tariffs, and which of these strategies might be most effective for your business, please contact ST&R.

Current Actions

Fees

Chinese-owned or -operated vessels

Any vessel with a Chinese operator or owned by an entity of China (except liquefied natural gas carriers and vehicle carriers; see below) will be assessed a fee on or before entry into a U.S. port.

Given the potential impacts to small ports if this fee were to be assessed at each port of call, the fee will be assessed (1) upon entry at the first U.S. port or place from a foreign destination per rotation or string of U.S. port calls, (2) at the first U.S. port within the U.S. customs territory, and (3) no more than five times a year on an individual vessel.

Chinese-built vessels

Non-Chinese operators of Chinese-built vessels will pay the higher of the per ton or per container fees set forth below upon the arrival of such vessels into a U.S. port.

OR

This fee will also be assessed (1) upon entry at the first U.S. port or place from a foreign destination per rotation or string of U.S. port calls, (2) at the first U.S. port within the U.S. customs territory, and (3) no more than five times a year on an individual vessel.

However, the fee may be suspended for a particular vessel for up to three years if the vessel owner orders and takes delivery of a U.S.-built vessel of equivalent or greater tonnage within that period. In addition, there are a number of exemptions from this fee, including for vessels below certain size or capacity thresholds, vessels engaged in short sea shipping, and certain U.S.-owned companies’ vessels.

Vehicle carriers

Beginning Oct. 14, 2025, foreign-built vehicle carrier vessels will be required to pay $150 per car equivalent unit capacity on or before entry into a U.S. port. This fee may be suspended for a particular vessel for up to three years if the vessel owner orders and takes delivery of a U.S.-built vessel of equivalent or greater CEU within that period.

LNG carriers

From April 17, 2028, to April 16, 2029, one percent of liquefied natural gas intended for exportation by vessel in a calendar year must be exported on U.S.-flagged and -operated vessels.

Beginning April 17, 2029, one percent of LNG exports must be exported by U.S.-built, -flagged, and operated vessels, and that amount will increase incrementally to 15 percent as of April 17, 2047.

These restrictions will not apply to a particular vessel for up to three years if the vessel owner orders and takes delivery of a U.S.-built LNG vessel of equivalent or greater capacity within that time.

Tariffs

USTR accepted public comments through May 19, 2025 on a proposal to impose additional tariffs (i.e., in addition to all other applicable duties, taxes, and fees already in place) on (1) ship-to-shore cranes manufactured, assembled, or made using components of Chinese origin, or manufactured anywhere in the world by a company owned, controlled, or substantially influenced by a Chinese national, and (2) certain cargo handling equipment of China.

Other

Readers are reminded that additional fees and/or other restrictions on inbound ships are still possible as a result of an ongoing investigation by the Federal Maritime Commission as well as the federal agency actions directed by an April 9 executive order.

Official Documents

• Federal Register: Notice of Proposed Modification of Action in Section 301 Investigation of China's Targeting the Maritime, Logistics, and Shipbuilding Sectors for Dominance (June 12, 2025)
• Federal Register: Notice of Action and Proposed Action in Section 301 Investigation of China's Targeting the Maritime, Logistics, and Shipbuilding Sectors for Dominance, Request for Comments (April 23, 2025)
• Federal Register: Proposed Action in Section 301 Investigation of China's Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance (February 27, 2025)
• Federal Register: Notice of Determination Pursuant to Section 301: China's Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance (January 23, 2025)
• Section 301 Investigation Report on China's Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance (January 16, 2025)
• Federal Register: Initiation of Section 301 Investigation: China's Acts, Policies and Practices Targeting the Maritime, Logistics, and Shipbuilding Sectors for Dominance (April 22, 2024)