Warren, Kelly Press Trump Admin to Support American Workers by Reinstating Port Fees on Chinese Ships

Warren, Kelly Press Trump Admin to Support American Workers by Reinstating Port Fees on Chinese Ships

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Washington, D.C. - U.S. Senators Elizabeth Warren (D-Mass.) and Mark Kelly (D-Ariz.) urged United States Trade Representative Jamieson Greer to protect American workers and promote domestic ship manufacturing by reinstating the Trade Act of 1974's Section 301 port fees on Chinese ships.

"Section 301 port fees [] are critical to revitalizing U.S. shipbuilding. Presidents of both parties have long recognized the serious threat that Chinese shipbuilding dominance poses to the United States, and…[these] fees and restrictions on Chinese vessels [] would have protected American shipbuilding businesses and workers," wrote the senators.

In 2000, China produced less than 5 percent of commercial ships. Last year, Chinese ships accounted for more than half of commercial ships produced worldwide. At the same time, U.S. shipyard production has almost entirely collapsed, accounting for only 0.1% of global production, leaving America's economy reliant on Chinese ships.

In the past, Presidents of both parties have recognized the threat of Chinese shipbuilding dominance and acted to counter it, including by investigating China's targeting of maritime, logistics, and shipbuilding. As a result of a Biden-era investigation, the Trump administration initially proposed fees of up to $1 million on Chinese-owned and operated ships as well as restrictions on the use of non-U.S. built, flagged, or operated ships to transport U.S. goods.

The prospect of these fees led to a 23.5 percent decrease in orders at Chinese shipyards in just nine months.

But President Trump's reckless trade war reversed this progress. China imposed its own fees on U.S. ships and massive tariffs on critical minerals used in military technology and semiconductors. As a result, the Trump administration made several concessions - including suspending the shipping fees and restrictions for one year - so China would drop its restrictions on critical minerals. Within days, the backlog of orders on hand at Chinese ports rose 25 percent.

Even since suspending the fees, the Trump administration has reiterated the need to "reclaim America's maritime strength" and generate "demand for U.S.-built ships, shipyards, and mariners," in its "Maritime Action Plan."

"Without meaningful fees on Chinese vessels, this 'plan' is meaningless," wrote the senators.

"We urge the Administration to stand up for American shipbuilders and reinstate the fees and restrictions imposed pursuant to USTR's section 301 investigation into Chinese shipbuilding," concluded the senators.

The senators urged Ambassador Greer to reinstate the fees and restrictions on Chinese ships entering U.S. ports, commit to keeping them in place, explain how the pause on fees is affecting American workers, and reveal whether the Trump administration secured any meaningful concessions from China for pausing the fees and restrictions.

Senator Kelly is the lead sponsor of the bipartisan Shipbuilding and Harbor Infrastructure for Prosperity and Security (SHIPS) for America Act; Senator Warren is a co-sponsor of the bill.

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