Shippers say renewed tax on Chinese ships could put some U.S. ag producers out of business

A trade group representing U. S. shippers of grain, soybeans and other agricultural commodities say a push by Democrats to renew port taxes on Chinese ships docking at American ports could put some crop producers out of business.

Democratic Senators Mark Kelly of Arizona and Elizabeth Warren of Massachusetts want the Trump administration to reinstate port fees on Chinese cargo vessels calling U. S. ports. The charges, which were implemented earlier this year, came after a U. S.

Trade Representative investigation found that China leveraged unfair advantages such as central control and massive subsidies to build a dominant position in the maritime sector. The fees were part of competing plans authored by Kelly and the administration to revive U. S. -flag shipping and shipbuilding.

President Donald Trump suspended the fees until November after China applied reciprocal fees on U. S. lines. The White House prior to that exempted empty vessels arriving to load farm and other bulk shipments after exporters protested. “Two Senators are now pressing to reinstate USTR’s ill-conceived proposed remedies to resuscitate the U. S.

shipbuilding – by dramatically increasing shipping costs for U. S. exporters and importers,” the Agriculture Transportation Coalition (AgTC) said this week. “Agriculture exporters are particularly vulnerable.

USTR’s proposal, developed during President [Joe] Biden’s term, embraced by President Trump, was suspended (until November 2026) following vigorous outpouring of opposition by all U. S. international trade interests. Now, [there is renewed] political pressure to reinstate it.”

First, the group says, the USTR’s proposals “threaten the very existence of large segments of U. S. agriculture, by denying them the ability to continue to export.” Second, the proposals “single out U. S.

exports for the most draconian measures, for which compliance is unrealistic if not impossible, and will inflict immediate economic harm on large portions of the country.”

A study prepared by Trade Partnership Worldwide in March detailing the impact of port fees was included in a letter sent to the administration and Congress and signed by 277 trade associations. Read more articles by Stuart Chirls here.