On Thursday, April 17, 2025, the United States Trade Representative (USTR) announced the final actions with regards to the Section 301 China shipbuilding issue.

In a press release, the USTR determined (upon completion of an investigation) that “China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance is unreasonable and burdens or restricts U.S. commerce…”

The Federal Register Notice summarized the USTRs final actions as follows:

• “… certain services fees on the maritime transport services of Chinese operators and shipowners; on maritime transport services of operators using Chinese-built vessels to be applicable on a non-discriminatory basis; certain service fees on the maritime transport services of operators of foreign-built vehicle carriers to be applicable on a non-discriminatory basis; and restrictions on certain maritime transport services for U.S. Liquified Natural Gas (LNG) to be applicable on a non-discriminatory basis. In addition, the U.S. Trade Representative is proposing additional tariffs on certain ship-to-shore cranes on a non-discriminatory basis, and proposing additional tariffs on certain other cargo handling equipment of China. USTR requests written comments regarding the proposed tariff actions set forth in this notice and will convene a public hearing in relation to the proposed tariffs.”

USTR’s press release indicates that these actions will be rolled out in two phases:

1. For the first 180 days the applicable fees will be set at $0.

• In the first phase, after 180 days:
  • Fees on vessel owners and operators of China based on net tonnage per U.S. voyage, increasing incrementally over the following years;
  • Fees on operators of Chinese-built ships based on net tonnage or containers, increasing incrementally over the following years; and
  • To incentivize U.S.-built car carrier vessels, fees on foreign-built car carrier vessels based on their capacity.

2.The second phase actions will not take place for 3 years:

• To incentivize U.S.-built liquified natural gas (LNG) vessels, limited restrictions on transporting LNG via foreign vessels. These restrictions will increase incrementally over 22 years.

In addition, USTR is seeking public comments on the proposed tariffs on ship-to-shore cranes and other cargo handling equipment, in line with the President’s Maritime Executive Order. The deadline to submit a request to appear at the hearing is May 8, 2025. Comments in response to this notice can be submitted or accessed here.

Dates applicable to Proposed Tariffs:

• April 17, 2025: Comment period opens.
• May 8, 2025: To be assured of consideration, submit requests to appear at the hearing on proposed tariff actions, along with a summary of the testimony, by this date.
• May 19, 2025: To be assured of consideration, submit written comments on the proposed tariff actions by this date.

Due to the rapidly changing application and modifications of duty rates, please note that Deringer is not responsible for coordinating the timing of U.S. entry and imposed tariff rates.