What Happened?
Ships carried $2.2 trillion of U.S. goods trade in 2024, and Congress and the Trump administration are weighing how to respond to China's dominance of global maritime infrastructure. The Congressional Research Service (CRS) published a report titled "Section 301 and China: Shipping and Shipbuilding Issues".
In 2024, ships carried $2.2 trillion of U.S. global goods trade by value, equal to 42.4 percent of all U.S. trade. Chinese shipbuilders held approximately 71 percent of global ship orders by gross tonnage in 2025, backed by an estimated $132 billion in state subsidies between 2010 and 2018.
U.S. industry owns just 1.9 percent of the world fleet by capacity and builds only 0.04 percent of global shipbuilding tonnage.
Why Does it Matter to Me?
The goods on store shelves and the prices on price tags are connected to who controls the ships that carry them.
State-owned or state-controlled Chinese firms own or operate terminals at 96 overseas ports. The U.S. Trade Representative (USTR) responded with port fees on certain vessels and tariffs on Chinese ship-to-shore cranes and other cargo-handling equipment, but those measures were suspended for one year beginning Nov. 10, 2025, following a trade agreement.
Reuters reported that China's retaliatory port fees, which took effect Oct. 14, 2025, could affect oil tankers representing 15 percent of global capacity. Higher shipping costs typically flow through to consumers as higher prices on imported goods.
Both Sides, Now
The CRS report lays out how the dispute began: five major labor unions petitioned USTR in April 2024 for action against Chinese practices in the maritime, logistics and shipbuilding sectors. USTR determined in January 2025 that China's targeting of those sectors was "unreasonable" and burdened U.S. commerce.
Chinese industrial plans set production and market-share targets, and subsidies and state financing helped advance China's global role in shipbuilding.
Opponents warn the fees carry real costs. Reuters reported that China imposed fees on U.S.-owned, operated, built, or flagged vessels starting Oct. 14, 2025, in direct response to U.S. measures, illustrating how the tit-for-tat dynamic raises costs for American shippers.
President Donald Trump and Chinese President Xi Jinping reached an agreement that led USTR to suspend its Section 301 actions for one year. Congress has not yet passed legislation to address the underlying shipbuilding gap.
What Happens Next?
The U.S. suspended its trade actions against China, including port fees and tariffs, through Nov. 9. The relevant tariff provisions are scheduled to resume Nov. 10 absent another policy change.
Congress is considering legislation to revitalize U.S.-flag shipping and shipbuilding, including the bipartisan SHIPS for America Act, the Save Our Shipyards Act, and the Building Ships in America Act.
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