The Trump administration has introduced a bold new trade policy aimed at reducing America’s reliance on Chinese shipping and revitalizing domestic shipbuilding, the New York Times reports.
The proposal, announced by the Office of the United States Trade Representative, would impose levies of up to $1.5 million on Chinese-built ships docking at US ports. Additionally, foreign carriers operating fleets with Chinese-made vessels could face significant fees, incentivizing a shift away from China’s dominance in the global shipping industry.
The policy is a direct response to China’s growing control over the global maritime sector. Over the past two decades, China has expanded its shipbuilding capabilities, now producing more than half of the world’s commercial cargo vessels—up from just 5% in 1999. The administration argues that this dominance threatens America’s economic independence and national security.
By imposing these levies, the Trump administration aims to encourage investment in US shipyards, ensuring that American exports and imports are less dependent on foreign-built vessels. The policy would also require that at least 15% of American exports be transported on US-flagged ships within seven years, with a goal of increasing the percentage of domestically built commercial fleets.
This initiative follows a broader “America First” approach, emphasizing domestic manufacturing and supply chain security. The policy is part of a larger effort to push back against China’s economic influence, ensuring that American businesses are not overly dependent on foreign-controlled infrastructure for trade.
The plan has bipartisan roots, originating from an investigation into China’s shipping industry dominance during the Biden administration. The study was prompted by concerns from American labor unions, highlighting the negative impact of foreign-built vessels on US workers and industries.
While some critics have expressed concerns that the levies could increase costs for importers and consumers, others argue that the long-term benefits outweigh the short-term disruptions. Experts note that higher shipping fees could encourage businesses to explore alternative logistics strategies, reducing dependency on Chinese supply chains and strengthening domestic production.
Additionally, the policy could open new opportunities for US shipyards and manufacturers, creating jobs and fostering technological advancements in the maritime sector. Over time, a revitalized American shipbuilding industry could reduce costs and improve global competitiveness.
The administration is currently accepting public feedback on the proposal until March 24, after which President Trump could enact the policy via executive order. While adjustments may be made, the core goal remains clear: reducing reliance on Chinese-built ships, strengthening US industry, and ensuring greater economic security for the future.
