The world’s two largest economies are about to turn the high seas into a battleground, and it’s not just about trade—it’s about power, dominance, and the future of global shipping. The United States and China are set to impose tit-for-tat port fees on each other’s vessels, a move that threatens to disrupt the flow of goods ranging from holiday toys to crude oil. But here’s where it gets controversial: China has exempted Chinese-built ships from its fees, while the U.S. aims to challenge China’s grip on the global maritime industry and revive its own shipbuilding sector. Is this a fair play, or is it a thinly veiled attempt at economic warfare? Let’s dive in.
On October 14, both nations will begin collecting additional port fees on ocean shipping firms, marking a new front in their ongoing trade war. China has already clarified that its fees will apply to U.S.-owned, operated, built, or flagged vessels, but with a notable exception: Chinese-built ships are off the hook. This exemption, detailed by state broadcaster CCTV, also extends to empty ships entering Chinese shipyards for repairs. The fees will be collected at the first port of entry on a single voyage or for the first five voyages within a year, following an annual billing cycle that began on April 17.
The U.S., meanwhile, is pushing back hard. Earlier this year, the Trump administration announced plans to levy fees on China-linked ships to counter China’s dominance in global maritime, logistics, and shipbuilding. An investigation during the Biden administration concluded that China’s policies and practices in these sectors are unfair, paving the way for these penalties. Analysts predict that China-owned container carrier COSCO will bear the brunt of these fees, potentially shouldering nearly half of the expected $3.2 billion cost in 2026.
But China isn’t taking this lying down. Last week, it retaliated by announcing its own port fees on U.S.-linked vessels, effective the same day. According to Jefferies analyst Omar Nokta, 13% of crude tankers and 11% of container ships in the global fleet will be affected. This back-and-forth has experts warning of a dangerous spiral. ‘This tit-for-tat symmetry locks both economies into a spiral of maritime taxation that risks distorting global freight flows,’ noted Athens-based Xclusiv Shipbrokers Inc. in a research note.
And this is the part most people miss: the conflict isn’t just about shipping fees—it’s about control. In a bold move, Trump threatened to impose a staggering 100% tariff on Chinese goods and new export controls on critical software by November 1, in retaliation for China’s restrictions on exports of critical minerals. Meanwhile, the U.S. has warned that countries supporting a UN plan to reduce greenhouse gas emissions from ocean shipping could face sanctions, port bans, or punitive vessel charges. China, on the other hand, has publicly backed the plan, setting the stage for another clash.
‘The weaponization of both trade and environmental policy signals that shipping has moved from being a neutral conduit of global commerce to a direct instrument of statecraft,’ Xclusiv added. This raises a critical question: Are we witnessing the end of shipping as a neutral industry, or is this just the new normal in an increasingly polarized global economy?
Amidst this turmoil, COSCO’s shares rose more than 2% in early trading on Tuesday, as the company announced a plan to buy back up to 1.5 billion yuan ($210.3 million) worth of its shares to safeguard shareholder interests. However, the shipping firm has yet to comment on the potential impact of the port fees.
As the dust settles, one thing is clear: the stakes are higher than ever. What do you think? Is this a necessary move to level the playing field, or is it a dangerous escalation that could harm global trade? Share your thoughts in the comments below—this is a conversation that needs your voice.
