China and US Exchange Port Fees as Trade Dispute Intensifies in 2025

China and the United States have entered a new phase of economic confrontation, exchanging steep port fees just days before Presidents Trump and Xi are set to meet in Seoul.

The latest escalation targets the multibillion-dollar maritime sector and arrives as both powers maneuver for advantage with a crucial trade ceasefire set to expire.

Starting October 14, Chinese ports will charge American-linked vessels a fee of 400 yuan per net ton, mirroring US fees set to be imposed on Chinese-owned or operated ships on the same day.

Both countries aim to make their charges felt sector-wide, including vessels flagged, built, or significantly owned by their respective rivals.

What triggered the port fee standoff in 2025?

The spark came from a US Section 301 investigation launched last year, which accused China of unfairly targeting the maritime sector and restricting American commercial interests.

Concluding China’s dominance was “unreasonable and burdens or restricts US commerce,” Washington rolled out new port fees on Chinese vessels, which take effect this month.

US fees reach $80 per net ton per voyage, with additional charges for non-Chinese companies operating ships built in China.

China's response was swift and proportional. Beijing’s announcement outlined comparable fees for any ship with substantial US ties, including those with at least 25 percent US equity, flying the US flag, or constructed in the US.

These retaliatory fees also follow an annual increase plan, rising to 1,120 yuan per ton by 2028, making the dispute expensive for foreign shipping interests.

Did you know?
China built over 1,000 commercial vessels last year, while the US produced fewer than 10.

How do new port fees impact shipping giants?

Industry analysts warn that the dueling port levies could cost shipping majors billions of dollars annually, with Chinese state-owned operator COSCO alone expected to face $1.53 billion in US port charges next year.

For the world’s top ten cargo carriers, the tally could exceed $3.2 billion. Large US-flagged container ships carrying over 10,000 containers could incur costs of over $1 million per port call in the United States under the new US structure.

The cost of doing business for multinational shippers escalates as operators on both sides face steep and growing fees.

Many are now calculating whether to reroute or flag vessels differently to avoid the worst penalties, introducing notable uncertainty and complexity to supply chains.

What are the official justifications from both sides?

According to the US Trade Representative, Chinese policies have “pursued maritime dominance for nearly three decades,” giving China control of more than half the world’s shipbuilding today.

Justifying the port fees as a necessary counter, the US framed its action as a push to restore fairness and curb Beijing’s influence in global shipping and trade infrastructure.

Beijing condemned the US approach as discriminatory and harmful to international trade norms, saying the US had “severely damaged” China’s shipping interests.

Chinese officials stated their countermeasures are justified and proportional, adding that reciprocal port fees were imposed only after the US initiated economic aggression. Both capitals maintain their policies to defend legitimate trade interests.

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How does the timing tie to the Trump-Xi summit?

Tensions are peaking just as President Trump and Xi Jinping prepare for their first in-person meeting since Trump returned to the White House.

The Asia-Pacific Economic Cooperation summit in Seoul sets the scene, with the port fee standoff emerging as a new front line in leverage ahead of key negotiations.

A 90-day US-China trade truce is set to expire just weeks after the summit, raising the stakes for progress or further escalation.

Diplomats on both sides now scramble for talking points and leverage as the world's eyes turn to Seoul.

Industry observers note the timing’s potential to disrupt planned trade logistics and complicate summit diplomacy, with both leaders under pressure to secure domestic advantages.

Could Port Fees Reshape Global Shipping Strategies?

The standoff forces shipping lines to reconsider traditional routes, flags, and supply chain partnerships. To mitigate exposure, some operators may explore alternative regional hubs, register vessels under neutral jurisdictions, or diversify away from heavily affected trade lanes between the US and China.

The economic impact is not limited to shipping firms; it can ripple through global supply chains, affecting costs for manufacturers, retailers, and ultimately consumers.

Insurers, freight forwarders, and commodity exporters are now closely monitoring policy shifts that could trigger further fee hikes or countermeasures.

As the world’s two largest economies exchange port levies and rhetoric ahead of the Seoul summit, the outcome will shape not just shipping costs but the future terms of global trade.

Leaders, businesses, and policy makers are now forced to weigh confrontation against compromise as each new fee heightens both pressure and uncertainty.