According to Lisa Baertlein reporting for Reuters, industry executives are expected to convey concerns to the U.S. Trade Representative regarding President Donald Trump's plan to boost the U.S. shipbuilding sector. They argue that the proposed fees on vessels linked to China would adversely impact domestic ship operators and ports rather than support them, as intended.

The executives assert that the plan would restrict U.S. operators by limiting the vessels they can utilize to avoid the fees, concentrating ship traffic at major ports while neglecting smaller ones. For instance, Edward Gonzalez, CEO of Seaboard Marine based in Florida, emphasized that any initiative to bolster U.S. shipbuilding should not harm existing U.S.-owned carriers.

One key aspect of contention is the proposed fee of up to $1.5 million for Chinese-built or Chinese-flagged vessels docking at U.S. ports. The Trump administration aims to reduce China's influence in maritime activity and promote domestically constructed vessels through these fees.

However, the plan poses an immediate challenge for U.S. operators such as Seaboard, a leading U.S.-owned international cargo carrier with a significant portion of their fleet consisting of China-built ships. The USTR highlights the substantial growth of China's share in the shipbuilding market from less than 5% in 1999 to over 50% in 2023.

Notably, U.S. vessel operators play a crucial role in transporting goods for industries like manufacturing, mining, and agriculture across domestic waterways. Fernando Maruri, the founder of King Ocean Gulf Alliance based in Texas, emphasized the reliance of American operators on foreign-built ships, with more than half being of Chinese origin.

To avoid the proposed fees, operators must be headquartered outside of China, have less than 25% of their fleet constructed in China, and not have any shipyard orders or deliveries scheduled from China within the next two years. A potential executive order might further intensify these regulations by imposing port fees on all fleets containing China-built vessels.