US suspends port fees with China to promote maritime talks

View of the cargo port in Qingdao, Shandong Province, China. Photo: Xinhua/VNA

According to the notice published in the Federal Register, the Office of the United States Trade Representative (USTR) announced that the United States will suspend all trade sanctions against China under the Section 301 investigation into “unfair trade practices,” starting from November 10. The USTR added that it “will also engage in negotiations with China under Section 301 regarding issues identified during the investigation.” In addition, the U.S. will temporarily suspend the 100% tariff on port container cranes and container chassis used for trucks.

Although the USTR did not disclose details about the negotiation methods or objectives with China, it stated that the U.S. will continue to promote the development of its domestic shipbuilding industry, including cooperation with key allies and partners. The USTR also announced that it will receive public comments on this matter on November 6 and 7.

With this decision, approximately 3.2 billion USD in annual port fees for large vessels built and/or operated by China arriving at U.S. ports will be temporarily waived for 12 months. This measure is part of an agreement reached between President Trump and Chinese President Xi Jinping in South Korea at the end of October, under which Beijing also agreed to temporarily suspend retaliatory fees imposed on ships related to the United States.

Earlier, on October 10, China announced that it would impose a special port fee on vessels owned or operated by U.S. companies, organizations, and individuals. The regulation, effective from October 14, was implemented in response to the U.S. port fee measures.

Due to the reciprocal port fee policies of both sides, U.S. shipping company Matson, headquartered in Hawaii, has paid 6.4 million USD in port fees to China. Meanwhile, China’s state-owned container shipping group COSCO is estimated to pay up to 1.5 billion USD in port fees annually.