Trade Groups Ask USTR to Extend Pause on China-Linked Ship Fees
Supply Chain

Trade Groups Ask USTR to Extend Pause on China-Linked Ship Fees

A coalition that includes the National Retail Federation sent a formal letter to U.S. Trade Representative Jamieson Greer asking the Trump administration to keep its suspension of Section 301 vessel fees in place before the pause expires November 9.

3 min read
Back to News

Several shipper associations, trade groups, and logistics providers sent a formal letter to U.S. Trade Representative Jamieson Greer on September 23, 2026, asking the Trump administration to keep its suspension of Section 301 vessel fees in place. The National Retail Federation was among the signatories. The fees, which target ships built in China or owned and operated by Chinese-connected entities, are currently paused but set to expire November 9 of this year.

TL;DR
  • -A coalition of shipper associations, trade groups, and logistics providers formally asked USTR Jamieson Greer to extend the suspension of Section 301 vessel fees on China-linked ships before the pause expires November 9.
  • -The fees, which ranged from $18 per net ton to $120 per container with annual increases scheduled each April, were suspended November 10, 2025. The coalition argued resuming them would add cost to an already strained transportation system.
  • -A broader U.S.-China trade truce was extended and tariffs reduced on up to $60 billion in goods following a Washington summit, but both sides remained quiet on the vessel fee question.

The Fee Structure and the Current Pause

Fees ranged from $18 per net ton to $120 per container and were set to rise every subsequent April, with some exceptions applied for certain vessel categories. The fees were suspended on November 10, 2025, one year before the current expiration date.

The policy was proposed over national security concerns tied to China's position as the world's dominant shipbuilder, and as a mechanism to encourage investment in a long-dormant U.S. commercial shipbuilding sector. The coalition's letter acknowledged that goal but argued the fee approach falls short on its own. The group contended that vessel fees are not enough to fully address the country's shipbuilding woes, and called instead for a dedicated strategy with sustained public and private investment, leadership, and long-term commitment to revitalize domestic capacity.

What the Letter Argues

The signatories framed the case for an extension around current freight market conditions rather than opposition to the policy's underlying objective. Stakeholders are concerned the fees could bring further uncertainty to the ocean freight market, which is already facing elevated transportation costs and shifting carrier capacity. The letter cited equipment availability challenges, port and inland network constraints, and broader uncertainty in global trade lanes as compounding pressures that a fee resumption would worsen.

In the letter's own language, "U.S. supply chains continue to face significant pressure," with importers, exporters, retailers, manufacturers, and agricultural producers all contending with the same set of freight market stresses. Resuming the fees in that environment, the coalition argued, would add another cost layer to an already strained transportation system.

Trade Truce Progress Has Not Resolved the Vessel Fee Question

The broader U.S.-China trade relationship has seen some movement in parallel. Following a week-long summit in Washington, D.C., the two governments extended a broader trade truce that had been set to expire in November and took steps to reduce tariffs on up to $60 billion worth of goods. That progress did not extend to the shipping fees. Both sides remained quiet on the fate of the shipping fees set to expire November 9, and China's own retaliatory fees, which it paused when the U.S. suspension was announced last year, were similarly unaddressed.

The two tracks are running on different timelines. The tariff truce extension does not carry over to the vessel fee suspension.

What Manufacturers Should Watch

For manufacturers moving goods on China-built vessels or through carriers with Chinese ownership ties, November 9 is a concrete planning date. If the USTR does not act before then, fees could resume at the originally announced rates, with scheduled annual increases beginning the following April.

One practical question is how much of a company's inbound ocean freight moves on vessels that would fall under the fee structure. Confirming that exposure with logistics partners before the deadline is a reasonable step. The tariff truce extension covering goods trade is a separate matter; manufacturers should verify the vessel fee status directly with their freight forwarders rather than treating the broader truce as a signal that shipping fees are also resolved.

Next
U.S. Steel, Eli Lilly, and Auto Suppliers Announce Domestic Facility Investments

Get Business Technology Updates

Practical guidance on complex operations, integration, portals, analytics, automation, custom software, trusted records, and fit-for-purpose engineering.

No spam. Unsubscribe anytime.