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By Jenna Sundel and Gabe Whisnant
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President Donald Trump's administration is weighing potential changes to its proposed fee on China-linked ships entering U.S. ports, following widespread backlash from industry groups warning of severe economic consequences, six sources familiar with the discussions told Reuters.
Officials are reportedly considering options such as delaying the rollout of the fee and introducing revised pricing models aimed at lowering the financial burden on Chinese vessels, the sources told Reuters.
Why It Matters
The Office of the U.S. Trade Representative (USTR) first proposed the fees in February following a probe into China's shipbuilding industry. The agency said that U.S. shipyards built 70 ships in 1975, but that number has decreased to five annually today.
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The proposed fees could cost $3 million per U.S. port call for China-built or linked vessels.
During public hearings on the proposal, representatives from several industries said the fees would complicate shipping due to the prevalence of Chinese-linked vessels and the time it would take to build new ships.
What To Know
One option being considered by the administration is a fee that is adjusted based on the number of Chinese-built ships in a company's fleet, a source told Reuters. Two of the sources said the administration is weighing a charge based on the tonnage of unloaded vessels rather than a flat rate.
Newsweek reached out to USTR for comment.
U.S. Trade Representative Jamieson Greer told the Senate Finance Committee on Tuesday that the agency is studying public comments and testimony from the hearings.
The news comes as the U.S. plans to institute a 104 percent tariff on Chinese imports starting Wednesday.
This includes a 20 percent tariff announced as punishment for fentanyl trafficking and a separate 34 percent announced last week.
China pushed back on the tariffs by instituting a 34 percent tariff on all U.S. imports starting on April 10.
Trump gave China until noon on Tuesday to revoke its tariff or face an additional 50 percent.
What People Are Saying
Greer said at the Senate Finance Committee hearing on Tuesday that the agency wants to "make sure that we have the right amount of time, the right incentives, to bring shipbuilding here without impacting our economy."
What Happens Next
The administration has not announced when the fees on China-linked ships will take effect.
The reciprocal tariffs are expected to start at 12:01 a.m. on Wednesday.
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Update 04/08/25 3:54 p.m. ET: This article has been updated with additional information.
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