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Trump Administration: Will Negotiate with China on Shipping and Shipbuilding Issues

The Trump administration stated it will engage in negotiations with China based on issues raised in the Section 301 investigation. Meanwhile, the United States formally announced a one-year suspension of port fees on vessels linked to China.

The Office of the United States Trade Representative (USTR) announced that starting November 10, all punitive measures imposed on China under Section 301 investigations (including port fees) will be suspended for one year. The USTR solicited public comments on this matter on November 6 and 7.

If the USTR port fee is implemented, it is expected to increase the cost for China to build large vessels and sail them to U.S. ports by $3.2 billion annually. The USTR stated in its announcement: “Under this agreement, the United States will suspend its response to this investigation for one year, starting November 10, 2025. The United States will also negotiate with China on the issues involved in this investigation under Section 301.”

The announcement did not disclose details such as how the negotiations were initiated or their objectives, but stated that the United States will continue to revitalize its domestic shipbuilding industry through consultations with key allies and partners.

Earlier this year, the United States announced plans to impose additional port fees on vessels built in China, purportedly to “weaken China’s influence over the global shipping industry and boost the U.S. shipbuilding sector.” In response, China promptly initiated countermeasures by imposing fees on vessels associated with the United States, effective October 14—the same day the U.S. fees took effect.

Shortly after the port fee measures took effect, China and the United States reached a consensus during economic and trade consultations in Kuala Lumpur: the U.S. would suspend for one year the implementation of its Section 301 investigation measures targeting China’s maritime, logistics, and shipbuilding industries. Following the U.S. suspension of these measures, China would also suspend its countermeasures against the United States for one year.

The United States’ ocean shipping company Matson announced last week that since China implemented port fees on October 14, the company has paid $6.4 million in port fees to China.

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