Washington and Beijing’s port fee standoff thrusts shipping into the heart of their trade war

14 October 2025

A cargo ship carrying containers approaches towards the Yantian port in Shenzhen, Guangdong province, China April 17, 2025.

The long arc of U.S.-China tensions has now bent toward the oceans, as both nations on Tuesday activated reciprocal port fees targeting each other’s vessels in a move that could reshape global trade flows. The U.S. began imposing extra charges on vessels linked to China in a bid to reduce Beijing’s dominance in shipping, while China answered in kind, placing levies on U.S.-owned, operated, built, or flagged ships.

China’s announced fees will be applied at the first port of entry on a voyage, or up to the first five voyages in a year, in an annual billing system that begins on April 17. The Chinese government drew a line around its own vessels, exempting Chinese-built ships, and also excluding empty ships entering repair yards. The U.S. side, in parallel, is instituting charges on ships tied to China, reflecting a policy shift toward bolstering its own maritime and shipbuilding sectors.

These measures are not isolated acts of brinkmanship: they come against a backdrop of broader escalation. China has recently expanded export controls on rare earth elements, prompting President Donald Trump to threaten tariffs on Chinese imports in the triple digits. In response, both capitals have tried to soften the optics, signaling that negotiation channels remain open and that their teams are working toward resolution.

Still, the symmetry of these port levies hints at deeper structural conflicts over control of maritime trade. Analysts warn that this tit-for-tat approach could distort freight patterns, raise shipping costs, and push global supply chains into unpredictable territory. For example, the Chinese state‐led container giant COSCO is said to be among the most exposed under U.S. rules, likely absorbing a significant share of the financial burden. Other sectors are also vulnerable: oil tankers, container ships, and liquefied gas carriers may all face higher operating costs under the new regime.

The escalation casts shipping as a tool of geopolitical influence rather than a neutral backbone of trade. What was once considered a technical, profit‐driven logistics network has been transformed into a battlefield of economic strategy. China’s decision to exempt its vessels underscores how these levies are calibrated not just for revenue but for leverage.

Some freight consultancies and shipping executives downplay the immediate shock effect of the fees, suggesting that many of the added costs will be passed on, folded into final prices, and absorbed by trade participants already operating under tariffs, disruptions, and supply. Others warn that distortions may ripple outward. As one brokerage put it, the “tit-for-tat symmetry locks both economies into a spiral of maritime taxation.”

Complicating matters further is overlap: certain vessels may be subject to both U.S. and Chinese fees. China’s policy also captures ships even if they are not U.S.-built or flagged but have significant U.S. ownership or board ties. U.S. firms such as Matson have acknowledged that they will be liable under China’s rules and have no plans to reroute.

The choice to unleash these charges now is strategic. Both nations see shipping as a lever they can pull to hurt the other’s trade without resorting immediately to full tariff war. Yet the moment also underscores fragility: global commerce is already under strain from inflation, logistical bottlenecks, and shifting alliances. The new maritime taxes risk compounding those pressures just as markets and businesses were adjusting to uncertainty.

Against this fierce backdrop, diplomatic overtures are persistent. Chinese officials have urged the U.S. to abandon its “erroneous practices” and return to dialogue. The United States, in turn, frames its stance as defending its domestic shipbuilding sector and countering alleged unfair Chinese practices in logistics and maritime policy. But with retaliatory measures already live, the transition from economic skirmishes to sustained confrontation may be underway.

As vessels reroute, freight schedules adjust, and companies hedge against uncertainty, the global shipping world confronts a new reality: every port visit may carry a geopolitical tax beyond fuel, tariffs, and docking costs.