According to Reuters, multiple industry executives across the United States warned at a hearing held by the Office of the United States Trade Representative (USTR) on the 24th local time that U.S. President Trump’s plan to “revitalize the U.S. shipbuilding industry” may be counterproductive. The plan relies on imposing fees on ships related to China. This approach will have an impact on domestic ship operators, exporters and related employment in the United States.

According to reports, the above-mentioned plan has triggered a strong backlash in the U.S. shipping industry. Because it threatens the very shipping companies and their customers that can bring orders to Trump’s plan to “revitalize the U.S. shipbuilding industry.”


Edward Gonzalez, CEO of Seaboard Marine, the largest international shipping company in the United States, bluntly stated at the hearing, "If efforts to revitalize the U.S. shipbuilding industry inadvertently destroy domestic shipping companies in the United States, it will not be in the national interest."

Kathy Metcalf, CEO of the American Shipping Association, said that replacing Chinese ships used in shipping is not "as simple as flipping a light switch." She warned that "punishing China also punishes the U.S. shipping system, which is an unacceptable result."

The report mentioned that domestic ship operators in the United States support key industries such as manufacturing, mining and agriculture, and are responsible for transporting goods on inland waterways, the Great Lakes and coastal areas.

It is not only the shipping industry that is affected by Trump's above-mentioned plan. The report mentioned that some U.S. agricultural exporters said that they have difficulty booking shipping capacity after May due to the unclear prospects brought by the policy; while representatives of the coal industry suggested that the proposed new fees will further hinder their export of products to the international market.

Mike Cohen, a member of the American Soybean Association's board of directors, urged, "I hope that while you promote the domestic shipbuilding industry, you will ensure that you do not sacrifice market access for farmers."

Reuters stated that the Office of the U.S. Trade Representative will finalize the proposal after hearing more opinions at a hearing on Wednesday (March 26). The office did not immediately respond to a request for comment.

On the 6th of this month, Reuters disclosed that a draft executive order from the White House showed that the United States plans to charge fees for any Chinese-built or Chinese-flagged ships that call at U.S. ports. The Trump administration claimed that the fee measure would help "contain China" and promote the development of the domestic shipbuilding industry in the United States, but this idea has triggered a backlash at home.

In this regard, Chinese Foreign Ministry spokesperson Mao Ning said on the 10th that we have previously stated our position on relevant issues. Measures such as imposing port fees and imposing tariffs on cargo handling equipment harm both ourselves and others. They will not only push up global shipping costs and disrupt the stability of the global production and supply chain, but will also increase domestic inflationary pressure in the United States, harm the interests of American consumers and businesses, and will ultimately fail to revitalize the U.S. shipbuilding industry. We urge the US to respect facts and multilateral rules and immediately stop its wrong practices. China will take necessary measures to defend its legitimate rights and interests.