Farm Groups Alarmed by USTR Proposal on Chinese Ship Fees

Farm groups have raised alarms over a recent proposal from the Office of the U.S. Trade Representative (USTR), which seeks to impose a series of fees on ships with Chinese affiliations. Notably, this includes a fee of up to $1 million for Chinese vessel operators each time such a ship docks at a U.S. port. This initiative aligns with former President Trump’s commitment to revitalize the U.S. shipbuilding industry and address long-standing grievances, yet it has stirred substantial concern amongst agricultural leaders.

The American Farm Bureau Federation’s Market Intel service published a study highlighting how these fees could inadvertently place a heavy burden on U.S. farmers and ranchers, who depend on reasonably priced and efficient shipping solutions. In 2024 alone, over 21% of vessels entering U.S. ports were Chinese-built. Hence, a substantial portion of ships transporting American goods, including agricultural products, could face these charges.

Addressing the Agri-Pulse summit, industry figures expressed apprehensions about the competitiveness of U.S. agricultural products. Jim Sutter, CEO of the U.S. Soybean Export Council, stressed that the fee could elevate U.S. soybean costs by up to 50 cents per bushel, detrimentally affecting market competitiveness. Meanwhile, the International Dairy Foods Association's concerns underscored the fleeting opportunities during the COVID pandemic when ships prioritized Asian goods, bypassing American exports altogether.

The USTR's investigation into Chinese shipping practices dates back to 2024 and is detailed under Section 301 of the 1974 Trade Act. This section authorizes USTR to impose tariffs or restrictions if a foreign act, policy, or practice is deemed inequitable and restrictive to U.S. commerce. USTR is responding to calls from business and labor groups highlighting the stark decline of American shipbuilding capacity since its mid-20th-century peak.