USTR Proposes Extending Suspension of Tariffs on Chinese-Linked Vessels Until January 2027

The Office of the United States Trade Representative (USTR) proposed extending the suspension of port fees affecting vessels linked to China for two more months, pushing their possible reinstatement to January 9, 2027. The proposal was included in a Federal Register notice scheduled for publication on October 26, and seeks to prolong the current pause, which would otherwise expire on November 9.

The suspension covers the fees set out in Annexes I, II and III of the original Section 301 action, which include charges on Chinese-owned or Chinese-operated vessels, vessels built in China, and certain foreign-built vehicle carriers. The additional 100% tariff on ship-to-shore cranes and cargo-handling equipment manufactured in China, under Annex V.A, would also remain suspended. The public comment period runs from October 23 to October 30, and the extension has not yet been formally adopted.

The fees originated from a Section 301 investigation launched during the Biden administration, following a 2024 petition by the United Steelworkers and other labor organizations, which found that Chinese industrial policies distorted global competition. Washington began collecting the fees on October 14, 2025, but suspended them on November 10, following the agreement reached between President Donald Trump and Chinese President Xi Jinping in South Korea. During the less than four weeks the fees were in effect, U.S. carrier Matson reported having paid $6.4 million in Chinese reciprocal fees, while China's COSCO faced estimated annual charges of $1.5 billion in the United States. The initial fees had been set at $50 per net ton per voyage for Chinese vessels, and $18 per net ton or $120 per container discharged for vessels built in China, figures well below the initial proposal of up to $1.5 million per port call by a Chinese vessel.

The extension proposal faces pressure from lawmakers and maritime unions calling for the fees to be reinstated. Senators Mark Kelly and Elizabeth Warren urged the administration to restore them immediately, arguing that their suspension undermines efforts to revitalize U.S. shipbuilding, noting that Chinese shipyards account for more than half of global commercial shipbuilding output compared to just 0.1% for the United States. On the other hand, carriers such as ACL welcomed the extension: its CEO, Andy Abbott, explained that its vessels had been mistakenly classified as vehicle carriers even though only 1% of their cargo consists of automobiles, and that the extension allows them to continue operating in the U.S. market. The National Coal Council, for its part, directly recommended making the suspension permanent, warning that the fees would raise shipping costs and reduce vessel availability for coal exports.

The proposal follows a meeting between Trump and Xi Jinping in September, and both leaders are expected to meet again in November. China, for its part, had also suspended — since November 10, 2025, and for one year — its own reciprocal fees on vessels linked to U.S. companies, organizations and individuals, although neither the USTR notice nor the sources consulted specify whether Beijing will extend that pause. The measure is also part of a broader debate over a port fee scheme for all foreign-built commercial vessels, driven by the Trump administration's Maritime Action Plan.