Trump Aims at Chinese Shipping, Risking Another Shock for Businesses
The New York Times
A new proposal would impose steep levies on Chinese-made ships arriving at U.S. ports, threatening to increase costs for imports.
The Trump administration has opened a broad new front in its global trade conflict, proposing to affix levies reaching $1.5 million on Chinese-made ships arriving at American ports.
Such fees would apply even on vessels made elsewhere if they are operated by carriers whose fleets include Chinese ships — an approach that risks increasing costs on an array of imported cargo, from raw materials to factory goods.
Given their potential to increase consumer prices, the levies could collide with President Trump’s promises to attack inflation. Nearly 80 percent of American foreign trade by weight is transported by ship, yet less than 2 percent is carried on American-flagged vessels, according to Gavekal Research.
As detailed on Friday by the Office of the United States Trade Representative, the proposal reflects the “America First” credo animating the Trump administration. It is engineered to discourage reliance on Chinese vessels in supplying Americans with products, while aiming to spur the revival of a domestic shipbuilding industry after a half-century of veritable dormancy.
Taken together with Mr. Trump’s expansive tariffs, the approach to shipping is a rebuke of the trading system constructed by the United States and its allies after World War II. Faith in the view of the world as a teeming marketplace has given way to hostility toward globalization in favor of the pursuit of self-sufficiency.
The proposal would advance the mission to isolate China while diminishing American reliance on its industry — a rare area of bipartisan consensus in Washington. The plan was the result of an investigation, started during the Biden administration, into the dominance of the Chinese shipping industry, in response to a petition filed by labor unions.
