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Wednesday, November 11, 2026
Logistics

US postpones ‘million-dollar’ China ship tax until January

The United States has extended the suspension of port fees targeting China-linked shipping for another two months, keeping the measures on hold through January 9, 2027, according to a notice published Tuesday in the Federal Register. 

The decision gives Washington and Beijing additional time to negotiate over Chinese policies affecting the maritime, logistics and shipbuilding industries.

The Office of the United States Trade Representative said the extension took effect November 9 and runs through 11:59 p.m. Eastern Time on January 9. It follows a one-year suspension that began November 10, 2025, under a trade agreement announced by President Donald Trump and Chinese President Xi Jinping.

The pause also continues to cover additional duties on Chinese ship-to-shore cranes and other cargo-handling equipment specified in the agency’s earlier action. 

China also extended its suspension of reciprocal port fees on U.S.-linked vessels until January 10.

USTR said the circumstances supporting the original suspension remain in place and that further discussions with China are needed. 

The U.S. fees could amount to millions of dollars for a single vessel’s visit. A 50,000-net ton ship, for example, would owe $2.5 million in charges.

The measures arose from the U.S. investigation under Section 301 of the Trade Act of 1974 into China’s targeting of the maritime, logistics and shipbuilding sectors for dominance. The suspended fee categories include charges affecting Chinese-owned or operated vessels, Chinese-built vessels and foreign-built vehicle carriers.

In comments to USTR, supporters of the pause argued that it would avoid higher shipping costs, prevent commercial disruptions and provide time for negotiations. Some sought permanent suspension of certain fees, warning that their return could disrupt trade and harm U.S. exports.

Opponents argued that the fees are needed to encourage investment in American shipbuilding and related industries, including container manufacturing. Some commenters also urged USTR to treat cargo-equipment tariffs separately from maritime service fees and end the suspension of those tariffs.

USTR said the United States will use the additional negotiating period to pursue its concerns with China while continuing efforts to expand domestic commercial shipbuilding capacity, develop the workforce and cooperate with allies.

Why it matters: The reciprocal pause averts additional shipping costs and potential disruptions affecting not only U.S. and Chinese carriers but also businesses worldwide that rely on Chinese-built vessels. It gives importers, exporters and shipowners temporary relief while trade negotiations continue.

Read more articles by Stuart Chirls here.

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The post US postpones ‘million-dollar’ China ship tax until January appeared first on FreightWaves.

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