Discord arose on Monday between US lawmakers, labor unions, and steel manufacturers on one side and shipping companies and farm exporters on the other over a Trump administration plan to impose hefty charges on Chinese-affiliated ships docking in the US.
During a hearing at the Office of the US Trade Representative regarding the proposal, over 30 witness testimonies were marked by virtual interventions from members of Congress commenting on the condition of the US shipbuilding industry. While there was general consensus on the need to tackle China's dominance, there were fears that the charges could have negative consequences.
Ocean carriers and farm exporters warned that the levies would disrupt global supply chains and harm various sectors of the US economy.
The CEO of the World Shipping Council, Joe Kramek, urged the USTR to remove the charges, stating that existing order backlogs and labor shortages were limiting US shipyards' capacity to take on additional orders.
Representing the American Soybean Association, Mike Koehne expressed concerns that the agricultural sector, which is already strained, would face increased costs for essential items like fertilizer and seed, making US soybeans less competitive on the global market compared to rivals in Brazil and Argentina.
Some members of Congress advocating for labor interests supported the proposal, believing that the fee could aid in reinvesting in the shipbuilding industry.
US Representative Chris Deluzio emphasized the importance of backing the shipbuilding sector to enhance capacity and boost employment opportunities.
Congresswoman Debbie Dingell highlighted the loss of over 70,000 shipyard jobs in the US in recent years, underscoring the decline in the country's global shipbuilding ranking. She also endorsed another aspect of the Trump administration's plan aimed at gradually increasing the shipping of US goods aboard US-flagged, constructed, and crewed vessels.