Costly fees on China-built vessels proposed in 2025 have again been postponed to January 2027.
- In response to broad objections from the U.S. business community and as part of an agreement reached between the U.S. and China last fall, USTR postponed the fees until November 9, 2026.
On Wednesday, U.S. Treasury Secretary Scott Bessent announced that the U.S. and China have agreed to extend the Busan agreement until January 10, 2027. This provides a measure of stability, including continued suspension of the reciprocal port fees and a pause on tariff increases, while allowing more time for further negotiations between the two countries during two upcoming international summits in November and December.
How Did We Get Here?
In February 2025, the Office of the United States Trade Representative proposed fees of up to $1.5 million on Chinese-made ships entering U.S. ports. The proposal is part of the USTR’s ongoing investigation under Section 301 of the Trade Act of 1974 into China’s dominance in the global shipping sector.
A wide variety of U.S. industry advocacy groups – including PPAI – voiced serious concerns about expected impacts of these fees, including increased costs and supply chain disruption. Specifically, a study conducted in March 2025 by Trade Partnership Worldwide (and supported by PPAI and nearly 30 other associations) found that the fees would increase shipping costs by 8% to 14%, leading to higher prices for imported goods.
PPAI’s Advocacy Efforts
This week, ahead of Chinese President Xi Jinping’s visit to Washington, PPAI again joined a coalition of more than 200 industry groups in signing a similar letter requesting an extended suspension of the Section 301 China-built vessel fees. That letter was also shared with the departments of Commerce, Treasury and Transportation, as well as key congressional committees. PPAI also sent its own letter to USTR sharing new figures from our global economic impact study and describing potential impacts of the fees on the branded merchandise industry.
- Read the coalition letter here.
- Read PPAI’s letter below.
“If these vessel fees come back into effect, they could add another layer of shipping costs and supply chain uncertainty for companies importing products into the U.S.,” says Alok Bhat, PPAI’s director of research & public affairs. “The letters support extending the suspension while still recognizing the broader goal of strengthening U.S. shipbuilding and maritime capacity.”
PPAI will continue advocating with the broader coalition on the Section 301 vessel and port fees issue, as well as our own trade advocacy and engagement.
Please contact Rachel Zoch, CAS, PPAI’s public affairs manager, at rachelz@ppai.org if you have any questions about regulatory issues or government affairs.
