China and the United States are imposing additional port fees on shipping, escalating their trade dispute to new heights.
As of 14 October 2025, China and the US have begun levying extra port charges on shipping companies transporting everything from holiday toys to crude oil—turning the world’s seas into a critical front in the commercial war between the globe’s two largest economies.
A full-scale trade war appeared inevitable last week after China announced a significant expansion of its export restrictions on rare earth minerals, and US President Donald Trump threatened to raise tariffs on Chinese products—potentially into triple digits.
Efforts to calm the markets
Following the weekend, both sides sought to reassure traders and investors, emphasising the cooperation between their negotiating teams and the possibility of finding a way out of the impasse.
China confirmed it had started collecting special fees on ships that are owned, operated, built, or flagged by the United States—but clarified that vessels built in China would be exempt from these taxes.
According to state broadcaster CCTV, Beijing detailed the exemption clauses, which include empty ships entering Chinese shipyards for repairs.
The new Chinese port charges will be collected at the first port of entry on each voyage or for the first five trips within a year, following an annual billing cycle that begins on 17 April.
Strategic moves by China and the US
Earlier this year, the Trump administration unveiled plans to introduce similar port fees on vessels linked to China, aiming to weaken Beijing’s position in the global maritime industry and boost the struggling US shipbuilding sector.
A previous investigation under former President Joe Biden concluded that China employed unfair practices to dominate the shipping, logistics, and shipbuilding industries—paving the way for these penalties.
China responded last week by announcing its own retaliatory port fees on ships connected to the US, set to take effect on the same day that Washington’s measures are implemented.
Expected impact on the shipping market
Analysts expect the Chinese shipping giant COSCO to be the hardest hit, shouldering nearly half of the estimated $3.2 billion cost the industry faces in 2026.
China’s Ministry of Commerce urged the United States to “correct its erroneous practices,” inviting dialogue and negotiation.
“If the US chooses confrontation, China will take it to the end. If they choose dialogue, China’s door remains open,” the ministry said in a statement.
Sanctions on Hanwha Ocean
Meanwhile, Beijing has imposed sanctions on five subsidiaries of the South Korean shipbuilding firm Hanwha Ocean, accusing them of “supporting” a US investigation into China’s trade practices.
Hanwha told Reuters that it is aware of the announcement and is “carefully reviewing” the potential business implications.
Retaliation and consequences for global shipping
“This tit-for-tat strategy locks the two economies into a spiralling cycle of maritime taxation that risks distorting global trade flows,” the shipping company Xclusiv Shipbrokers noted in a recent analysis.
Experts say the new fees may not severely disrupt the industry, as rising costs are likely to be absorbed into higher prices.
The US announced last Friday an exemption for long-term chartered vessels owned by China and carrying ethanol and LPG, delaying the new port fees until 10 December.
The Hanwha factor
China’s sanctions target five US-based subsidiaries of Hanwha Ocean, further escalating its dispute with Washington in the maritime sector and threatening additional retaliation.
The move is part of a long-running struggle for dominance in global shipping between the two powers.
Both sides have already imposed special charges on each other’s ports, while the US has mobilised allies—chiefly South Korea—to help revive its almost non-existent shipbuilding industry.
Shipping, which facilitates around 80% of global trade, is just one flashpoint in the tense relationship between China and the US that has kept global investors on edge in recent days.
Beijing has tightened export controls on rare earth elements, while Washington has expanded restrictions on semiconductor access and threatened further tariffs of up to 100%.
Although officials on both sides stress that talks are continuing, it remains uncertain whether they can reach an agreement before the planned summit between Donald Trump and Xi Jinping.
One risk for Xi is that China’s latest measures on rare earths and shipping—affecting a large portion of global supply chains—could push countries like South Korea to side more closely with the United States and increase pressure on Beijing.
China’s response and retaliatory steps
China said it is assessing the impact of the US Trade Representative’s Section 301 investigation into its shipping industry and may take further action.
According to the Ministry of Commerce, Hanwha Ocean’s subsidiaries “assisted and supported the US government’s investigative activities,” thereby endangering China’s sovereignty, security, and development interests.
The five entities blacklisted by Beijing are:
- Hanwha Shipping LLC
- Hanwha Philly Shipyard Inc.
- Hanwha Ocean USA International LLC
- Hanwha Shipping Holdings LLC
- HS USA Holdings Corp.
South Korea’s reaction
China has, in recent years, moved away from its former shipbuilding rivals—South Korea and Japan—as Chinese shipyards have overtaken competitors to make China the world’s leading shipbuilder.
At the same time, the Trump administration has championed efforts to revitalise America’s shipbuilding industry, offering South Korea an opportunity to expand its influence.
Seoul has backed plans to channel $150 billion in investments to support Washington’s ambitions in the maritime sector.
www.bankingnews.gr
A full-scale trade war appeared inevitable last week after China announced a significant expansion of its export restrictions on rare earth minerals, and US President Donald Trump threatened to raise tariffs on Chinese products—potentially into triple digits.
Efforts to calm the markets
Following the weekend, both sides sought to reassure traders and investors, emphasising the cooperation between their negotiating teams and the possibility of finding a way out of the impasse.
China confirmed it had started collecting special fees on ships that are owned, operated, built, or flagged by the United States—but clarified that vessels built in China would be exempt from these taxes.
According to state broadcaster CCTV, Beijing detailed the exemption clauses, which include empty ships entering Chinese shipyards for repairs.
The new Chinese port charges will be collected at the first port of entry on each voyage or for the first five trips within a year, following an annual billing cycle that begins on 17 April.
Strategic moves by China and the US
Earlier this year, the Trump administration unveiled plans to introduce similar port fees on vessels linked to China, aiming to weaken Beijing’s position in the global maritime industry and boost the struggling US shipbuilding sector.
A previous investigation under former President Joe Biden concluded that China employed unfair practices to dominate the shipping, logistics, and shipbuilding industries—paving the way for these penalties.
China responded last week by announcing its own retaliatory port fees on ships connected to the US, set to take effect on the same day that Washington’s measures are implemented.
Expected impact on the shipping market
Analysts expect the Chinese shipping giant COSCO to be the hardest hit, shouldering nearly half of the estimated $3.2 billion cost the industry faces in 2026.
China’s Ministry of Commerce urged the United States to “correct its erroneous practices,” inviting dialogue and negotiation.
“If the US chooses confrontation, China will take it to the end. If they choose dialogue, China’s door remains open,” the ministry said in a statement.
Sanctions on Hanwha Ocean
Meanwhile, Beijing has imposed sanctions on five subsidiaries of the South Korean shipbuilding firm Hanwha Ocean, accusing them of “supporting” a US investigation into China’s trade practices.
Hanwha told Reuters that it is aware of the announcement and is “carefully reviewing” the potential business implications.
Retaliation and consequences for global shipping
“This tit-for-tat strategy locks the two economies into a spiralling cycle of maritime taxation that risks distorting global trade flows,” the shipping company Xclusiv Shipbrokers noted in a recent analysis.
Experts say the new fees may not severely disrupt the industry, as rising costs are likely to be absorbed into higher prices.
The US announced last Friday an exemption for long-term chartered vessels owned by China and carrying ethanol and LPG, delaying the new port fees until 10 December.
The Hanwha factor
China’s sanctions target five US-based subsidiaries of Hanwha Ocean, further escalating its dispute with Washington in the maritime sector and threatening additional retaliation.
The move is part of a long-running struggle for dominance in global shipping between the two powers.
Both sides have already imposed special charges on each other’s ports, while the US has mobilised allies—chiefly South Korea—to help revive its almost non-existent shipbuilding industry.
Shipping, which facilitates around 80% of global trade, is just one flashpoint in the tense relationship between China and the US that has kept global investors on edge in recent days.
Beijing has tightened export controls on rare earth elements, while Washington has expanded restrictions on semiconductor access and threatened further tariffs of up to 100%.
Although officials on both sides stress that talks are continuing, it remains uncertain whether they can reach an agreement before the planned summit between Donald Trump and Xi Jinping.
One risk for Xi is that China’s latest measures on rare earths and shipping—affecting a large portion of global supply chains—could push countries like South Korea to side more closely with the United States and increase pressure on Beijing.
China’s response and retaliatory steps
China said it is assessing the impact of the US Trade Representative’s Section 301 investigation into its shipping industry and may take further action.
According to the Ministry of Commerce, Hanwha Ocean’s subsidiaries “assisted and supported the US government’s investigative activities,” thereby endangering China’s sovereignty, security, and development interests.
The five entities blacklisted by Beijing are:
- Hanwha Shipping LLC
- Hanwha Philly Shipyard Inc.
- Hanwha Ocean USA International LLC
- Hanwha Shipping Holdings LLC
- HS USA Holdings Corp.
South Korea’s reaction
China has, in recent years, moved away from its former shipbuilding rivals—South Korea and Japan—as Chinese shipyards have overtaken competitors to make China the world’s leading shipbuilder.
At the same time, the Trump administration has championed efforts to revitalise America’s shipbuilding industry, offering South Korea an opportunity to expand its influence.
Seoul has backed plans to channel $150 billion in investments to support Washington’s ambitions in the maritime sector.
www.bankingnews.gr
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