Trump Grabs the Wheel of Global Shipping… And Steers Straight Into a Fee Storm

Well, just when you thought Trump might be ready to power down for Easter weekend (swing a few clubs in Palm Beach, post a selfie with Barron, maybe fire off a Truth Social about how wind turbines cause baldness) he had one last grenade to lob into the global economy before the egg hunts began (and no, he didn’t actually fire Jerome Powell and take control of monetary policy… yet).

No, he didn’t fire Jerome Powell and name himself King of Interest Rates (though let’s not rule that out for Q2). Instead, he took a swing at the one thing nearly every country depends on: boats. Late last night, the Trump administration announced it would begin imposing steep fees on Chinese-built vessels docking at U.S. ports.

To be fair, this move wasn’t entirely a Trump original. The investigation into China’s maritime dominance started under Biden… yes, we’re in that rare window where both presidents agreed on something other than “ice cream is good.” The report found that China now builds around 75-80% of the world’s commercial ships. And soon, that number could hit 98%. In other words, China pretty much owns the ocean.

Beginning October 14, 2025, Chinese-owned vessels will be hit with a $50 per net ton docking fee every time they show up at a U.S. port. For context, a large container ship carrying 10,000 containers could rack up millions in annual fees. And those fees don’t stay flat… they rise like coastal real estate. By 2028, the cost will hit $140 per net ton, or roughly $250 per container. That’s five times per year, per vessel.

Car carriers are getting whacked too. Non-U.S.-built ships hauling vehicles into the U.S. will be charged $150 per Car Equivalent Unit. So if your next Toyota shows up via China-built ship, congrats, it’s now a luxury import.

And it doesn’t stop there. A second phase kicks in three years from now, targeting foreign LNG (liquefied natural gas) ships. The restrictions will grow tighter over the next 22 years… a timeline so long it could span three more presidencies and 10 more of Elon Musk’s offspring.

Now, about that loophole. Shipowners can avoid the new fees… but only if they’ve placed an order for a U.S.-built vessel. That buys them a three-year grace period. But there’s a catch: if that American ship isn’t delivered in time, the fees come due retroactively. And they’ll only be waived on a one-for-one basis… meaning the fee is only suspended for the same tonnage as the American ship ordered.

Empty vessels are exempt if they’re just pulling up to haul away coal or grain, and ships servicing U.S. territories, the Caribbean, or Great Lakes ports are off the hook too. But if you’re bringing in flat screens and yoga pants from Shanghai, prepare to pay. U.S. Trade Representative Jamieson Greer said the move is meant to curb China’s dominance, “protect the supply chain,” and “send a demand signal for U.S.-built ships.” What he really meant was: Please, for the love of all that is holy, build some boats in America again.

Supporters of the policy include U.S. steelworkers, shipbuilders, and a bunch of trade hawks who’ve had “decouple from China” circled on their vision board since 2016. But opponents (like retail lobbies, port officials, and everyone who moves freight for a living) warn this could be a disaster.

Already, shippers are rerouting traffic to Europe. In fact, Chinese imports into the UK jumped 15%, and EU-bound cargo rose 12% in the first quarter of 2025 alone. Congestion is getting gnarly in ports like Felixstowe, Rotterdam, and Barcelona. And back home, importers are preparing for higher costs that’ll eventually hit consumers. Again.

Chinese officials, unsurprisingly, are pissed. Beijing’s foreign ministry accused the U.S. of shooting itself in the foot, saying the policy will raise prices, disrupt supply chains, and won’t actually bring back domestic shipbuilding.

It’s not clear if it’ll work. Domestic shipyards are few, backlogged, and expensive. But for Trump, this appears to be less about instant results and more about sending a message: if you want to do business with the United States, it’s time to start investing in the United States.

Whether that message turns into actual shipbuilding jobs (or just higher shipping costs) is the part we’ll all be watching.

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