International Fresh Produce Association welcomes adjustments, pledges ongoing advocacy to protect agricultural trade
The U.S. Trade Representative (USTR) on 18 April 2025 announced that it will impose a revised fee schedule on Chinese‑built vessels calling at U.S. ports, a move intended to counter what Washington describes as Beijing’s bid for dominance in global shipbuilding and logistics.
The new plan abandons the previously‑floated flat charge of up to $1.5 million per port call and instead introduces a sliding scale that starts at $50 per net ton (or $120 per container) when the fees take effect on 14 October 2025, with incremental increases over the following three years.
Empty foreign bulk carriers arriving solely to load U.S. exports, vessels plying domestic coastal routes, and ships serving the Great Lakes, Caribbean and U.S. territories are exempt.
The fee plan is the first concrete action to emerge from a Section 301 investigation launched on 17 April 2024 after a coalition of five U.S. labor unions petitioned the government to challenge China’s maritime industrial policies.
In a determination released in January 2025, USTR found those policies “unreasonable” because they displace foreign competitors and create dependencies that threaten U.S. economic security.
Under the revised schedule, Chinese‑built and owned container vessels will pay $50 a net ton at launch, rising by $30 annually; non‑Chinese owners of Chinese‑built ships will pay $18 a ton, with smaller increases of $5 a year.
Operators that order or accept delivery of a U.S‑built ship within three years may qualify for rebates, and LNG carriers receive an extended grace period that phases in U.S‑built tonnage requirements through 2047.
The fee applies once per voyage and is capped at six voyages a year, a tweak designed to ease worries that repeated calls at multiple U.S. ports would compound costs.
Fresh‑produce shippers were among the loudest critics of the original proposal, warning that higher port costs could spoil time‑sensitive cargoes and raise prices for consumers.
The International Fresh Produce Association (IFPA) welcomed the changes but cautioned that vigilance is still required.
“While the USTR’s actions may affect agricultural and perishable products, we appreciate that the revised fee structure appears to take several concerns unique to the agricultural sector into account.”
IFPA noted that it had “worked diligently to ensure that the voices of the fresh produce and floral industries were heard,” joining more than 300 business and trade groups to underline the sector’s dependence on predictable global shipping lanes and the narrow delivery windows inherent to perishable goods.
The association also stressed its broader policy stance: “IFPA remains committed to supporting fair and effective trade enforcement that strengthens U.S. maritime interests without burdening American agriculture. We will continue to engage with the administration, Congress, and our industry partners to promote policies that enable a resilient, efficient, and competitive trade environment.”
Next on the calendar is a public hearing on 19 May, where USTR officials will take testimony on the fee design and on related tariff proposals covering ship‑to‑shore cranes and chassis parts.
IFPA says it will file formal comments ahead of that session to ensure produce and floral shippers remain “front‑of‑mind” as enforcement details are finalized.
Industry analysts view the fee rollout as part of a wider bipartisan push embraced by both the Trump and prior Biden administrations to revive U.S. shipbuilding capacity and lessen reliance on Chinese equipment.
Supporters argue that the plan will create high‑quality manufacturing jobs and bolster national security; critics counter that higher logistics costs could ripple through supply chains, ultimately raising grocery bills and dampening export competitiveness.
