AAFA Responds to New Port Fees on Chinese-Owned and Operated Carriers

October 14, 2025 | WASHINGTON, D.C.
Effective today, the U.S. government began imposing fees on Chinese-owned and operated carriers, as well as on any ocean carriers with Chinese-built vessels calling at U.S. ports. The stated objective of this new port-fee-regime is to address unfair practices that led to China’s dominance in global shipbuilding—where it produced 53 percent of the world’s ships in 2024—and to strengthen the U.S. shipbuilding industry.

"While we welcome the goal to strengthen our domestic shipbuilding industry, these port fees fail to achieve their stated objectives," said AAFA Executive Vice President, Nate Herman. "Rather than reducing reliance on Chinese shipbuilding, carriers have simply reshuffled their fleets by deploying non-Chinese-built ships on U.S. routes while continuing to expand orders at Chinese shipyards. China’s global market share in shipbuilding continues to rise, climbing above 65 percent in June and reaching 84 percent in August. At the same time, Chinese carriers are shifting calls from U.S. ports to Canada and Mexico to maintain North American service while avoiding the fees. This diverts business away from U.S. ports and reduces work opportunities for American longshoremen."

"We urge the Trump administration to reconsider this policy. Instead of imposing punitive port fees that create inefficiencies and divert business away from U.S. ports, the focus should be on creating strong domestic incentives and providing sustained support to revitalize American shipbuilding. Only by investing at home can we strengthen U.S. competitiveness and secure our maritime future," said AAFA Trade and Transportation Specialist, Audrey Clark.

These fees are set to increase each April, raising the risk that the costs will become too high for some carriers to absorb and begin to be passed along to shippers. Shippers include apparel and footwear companies who may raise prices for consumers as a result of the rising transportation costs.

China recently enacted legislation authorizing retaliatory measures, including additional fees, restrictions, or port bans, against countries that adopt or support discriminatory shipping rules. In its first move under the law, China announced matching vessel fees on U.S.-flagged, built, owned, or operated ships, mirroring U.S. rates and timelines starting October 14 and rising annually each April through 2028. For carriers with more than 25 percent U.S. ownership and Chinese-built vessels, this could mean being charged fees on both ends of their transpacific routes. AAFA urges both countries to step back from these escalating fees, which risk disrupting trade, creating inefficiencies across supply chains, and raising costs for businesses and consumers alike.

Learn more on AAFA's trade initiatives and concerns with the Fashion Tariffs 101 explainer and recent letters to the administration.