Following President Trump’s trade deal with Chinese President Xi Jinping, the Office of the U.S. Trade Representative has announced the suspension of recently imposed actions as part of its Section 301 investigation of China shipbuilding.
- As part of that deal, Trump agreed to lower tariffs on Chinese imports to 47% in exchange for promises from Beijing on fentanyl, rare earth elements and soybeans.
The suspension, which starts November 10, 2025, and lasts for one year, covers proposed vessel fees on maritime transport services as well as tariffs on ship-to-shore cranes and cargo-handling equipment. As a result, no fees or duties will be collected during this period.
What the suspension means for the promotional products industry is:
- Immediate relief from cost escalation tied to freight, port and handling fees
- Improved supply-chain predictability for 2026 production and imports
- Continued diversification and affordability in the import pipeline that most suppliers depend on.
“The suspension delivers a one-year tariff pause, strengthens supply-chain stability and highlights PPAI’s active voice in trade policy outcomes that directly affect members,” says Alok Bhat, market economist, research and public affairs lead at PPAI.
Alok Bhat
Research & Public Affairs Lead, PPAI
PPAI’s Stance
The Section 301 actions were opposed by numerous trade associations, including PPAI, which submitted comments ahead of a hearing this past March and supported a study by Trade Partnership Worldwide that found USTR’s initially proposed remedies would have a drastically negative economic impact.
During the hearing, concerns raised included increased costs, supply chain disruption, impact on agriculture and a lack of direct benefit to U.S. shipbuilding. Many pointed out that the U.S. shipbuilding sector lacks capacity to replace Chinese-built vessels anytime soon, making the policy more punitive than productive.
Instead of imposing broad fees, there were recommendations during the hearing for alternative approaches such as:
- Tax incentives and subsidies for U.S. shipbuilding to improve competitiveness.
- Targeted trade agreements to address concerns about China’s subsidies without harming U.S. businesses.
- Delays or phased implementation to allow industries time to adjust.
- Exploring exemptions for non-Chinese operators to avoid unintended consequences.
“PPAI strongly urges USTR to consider the unintended economic consequences of the proposed Section 301 remedies, particularly their strain on U.S. supply chains, cost structures and business operations,” Drew Holmgreen, president and CEO of PPAI, said in comments submitted to the USTR ahead of the hearing.
“While these measures are intended to support domestic shipbuilding, they risk creating higher costs for importers, disrupting logistics networks and weakening the competitiveness of industries that rely on global trade, including promotional products.”
View PPAI’s comments to the USTR below.
