WASHINGTON — The Trump administration announced plans to engage in formal negotiations with China over shipbuilding and maritime logistics issues, as it moves to suspend port fees on vessels linked to China for one year.
According to a notice published by the Office of the U.S. Trade Representative (USTR), all punitive measures imposed under the Section 301 investigation against China will be paused for 12 months starting 10 November 2025. The temporary suspension applies to U.S. port fees targeting large Chinese-built ships, which were projected to total about $3.2 billion annually.
The USTR confirmed that public comments on the suspension were accepted on 6 and 7 November. The move forms part of an agreement reached between U.S. President Donald Trump and Chinese President Xi Jinping during their late-October meeting in South Korea, aimed at easing trade tensions between the two countries.
As part of the same deal, China also agreed to pause its retaliatory port fees on vessels associated with the United States. Both sides’ port fees took effect on 14 October. Hawaii-based shipping company Matson Inc. reported paying $6.4 million in fees to China since that date.
The USTR statement noted that the U.S. will also begin discussions with China under Section 301 regarding “the issues raised in this investigation.” While no details were provided on the framework or objectives of the negotiations, the notice emphasized that the U.S. would continue consultations with key allies to support efforts to revitalize domestic shipbuilding.
Analysts have identified China COSCO Shipping Corp. as the Chinese carrier most affected by the U.S. port fees, with exposure estimated at up to $1.5 billion annually.
