US and China Implement, Then Suspend, Reciprocal Port Fees Amid Escalating Trade Tensions

Tit-for-Tat Port Fees Implemented in October

In October 2025, trade tensions between the United States and China escalated significantly as both nations implemented new port fees targeting each other's shipping vessels. The measures, which took effect on October 14, 2025, marked a new front in the ongoing economic rivalry between the world's two largest economies.

The U.S. initiated its actions under an executive order titled 'Restoring America's Maritime Dominance,' mandating the U.S. Trade Representative (USTR) to impose charges on Chinese-owned vessels entering American ports. This move was aimed at addressing perceived imbalances in global maritime trade dominance and bolstering the domestic shipbuilding industry. Fees for Chinese-owned, operated, or flagged vessels began at $50 per net ton, slated to increase to $140 by April 2028. Additionally, Chinese-built vessels faced fees starting at $18 per net ton or $120 per container, with these charges also set to rise over the next five years. These fees could apply up to five times per year for individual vessels.

In retaliation, China announced its own port fees targeting American-operated vessels, characterizing them as 'countermeasures' against what it termed the U.S.'s discriminatory practices. Starting on the same day, American-owned or -operated vessels, as well as U.S.-built ships or those flying the American flag, incurred a fee of 400 yuan (approximately $56) per net ton. These charges were also projected to rise significantly, reaching 1,120 yuan ($157) by April 2028, and would apply per voyage, up to five times annually.

Impact on Global Shipping and Trade

The introduction of these reciprocal fees immediately raised concerns among analysts regarding their potential impact on global trade operations and supply chains. Major shipping companies reportedly began rerouting vessels to avoid the new charges, with estimates suggesting the measures could cost the industry billions. For instance, the Chinese container firm COSCO was projected to face an estimated burden of $3.2 billion from U.S. fees. The escalation also contributed to increased port congestion in China, with waiting times for commodity vessels reaching their highest levels in 2025.

Industry experts warned that the fees could disrupt the stability of global production and supply chains, potentially leading to increased inflationary pressure within the United States and harming American consumers and businesses. The maritime sector became a new battleground in the trade war, with both countries leveraging their economic power to influence global shipping dynamics.

Recent De-escalation Efforts

However, a significant de-escalation occurred in November 2025. Following a meeting between U.S. President Donald Trump and Chinese President Xi Jinping in Busan, South Korea, both nations announced a temporary suspension of these new port fees and related tariffs.

On November 10, 2025, China's Ministry of Transport announced a one-year suspension of all special port fees and related investigations affecting US-linked vessels. Simultaneously, the United States announced a one-year suspension of Section 301 tariffs targeting Chinese shipping equipment, including ship-to-shore cranes and cargo handling machinery. These coordinated actions, effective through November 9, 2026, represent the first major de-escalation in a trade conflict that had significantly disrupted global supply chains and the maritime industry.