US-China Trade Tensions Flare as china Imposes New Port Fees on US-Linked Vessels
BEIJING – Escalating trade tensions between the United States and China have resurfaced with the implementation of new port fees on vessels linked to the US, state media reported Tuesday. The move comes as both nations attempt to navigate a path toward de-escalation, with a potential meeting between President Trump and Chinese President Xi Jinping still anticipated in South Korea later this month.
The fees, closely mirroring port charges recently imposed by Washington, will initially amount to 400 yuan (£42; $56) per net tonne for US-linked ships berthing at Chinese ports. These apply to vessels operated by US firms, and those in which an American company holds a stake of 25% or more. According to state broadcaster CCTV, the charges will increase annually, reaching 1,120 yuan per tonne by April 2028.
The retaliatory measures stem from US duties levied on Chinese ships, which chinese state media claims violate a maritime transport agreement between the two countries. Freight analyst Claire Chong estimates that ships carrying dry bulk cargoes could face up to $3 million in port fees promptly, possibly rising to over $10 million for the largest vessels by 2028.Chong, from shipbroker Thurlestone Shipping, described the fees as adding up to “significant” costs to the industry. An exemption for Chinese-built vessels, which comprise nearly half of the global dry bulk fleet, may mitigate some of the impact.
The escalating tensions arrive despite a tariffs truce agreed to earlier this year in May. That agreement saw both sides commit to dropping triple-digit tariffs, averting a potential halt in trade. Currently, US tariffs on chinese goods carry an added 30% levy compared to the start of the year, while US goods entering China face a 10% tariff.
Further escalating the situation, Beijing also added five US subsidiaries of South Korean shipbuilder Hanwha Ocean to its sanction list on Tuesday.
US Treasury Secretary Scott Bessent stated Monday that a “100% tariff dose not have to happen,” and that the relationship between the two countries remains “good,” with “lines of communication have reopened.” However, a Chinese commerce ministry spokesperson countered that the US ”cannot demand talks while together imposing new restrictive measures with threats and intimidation.” They affirmed China’s position: “If there’s a fight, we’ll fight to the end; if there’s a talk, the door is open.”
