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Businesses Bash Fees on Chinese Ships; Tariff Focus Narrows By Mark R. Long

The Trump administration's proposal to impose steep fees on Chinese ships calling at U.S. ports is meeting fierce resistance. A broad cross-section of American businesses is warning that the charges would jack up costs for importers and consumers.

Nearly 300 companies, trade groups and individuals submitted comments or requests to speak -mostly in opposition-for a two-day public hearing on the proposal by the U.S. Trade Representative's office starting today in Washington. The WSJ's Costas Paris and Paul Berger write that the fees, if enacted as originally floated, would result in fewer port calls, higher freight rates, delayed deliveries and job losses , according to comments from retailers, shipping companies, farm groups and others.

Aimed at countering China's rise as a maritime power and reviving American shipbuilding, the proposal calls for, among other fees, charging carriers up to $1.5 million for each U.S. port call by a Chinese-built vessel.

Chinese shipyards delivered over half of global tonnage last year. The U.S. produced just 0.1% . Ocean carriers say it isn't realistic to shift production of the big containerships used in global trade to the U.S., where shipbuilding has withered for decades and labor costs are much higher.

The U.S. and China stepped up diplomatic efforts with a Republican senator laying the groundwork for an in-person summit between President Trump and Chinese leader Xi Jinping. (WSJ) The delayed, over-budget production of a Navy frigate shows how the U.S. has fallen behind China in building warships. (WSJ) CONTENT FROM: PENSKE LOGISTICS Gain a Closer Look. Gain Ground with Penske Logistics.

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Quotable Tariff Targets

The Trump administration is narrowing its plans for tariffs set to take effect next week, likely skipping a set of industry-specific duties while going ahead with reciprocal levies on a targeted group of countries that make up the bulk of U.S. foreign trade.

An administration official said sector-specific tariffs are no longer likely to be announced on April 2, though planning is fluid , the Journal's Gavin Bade, Josh Dawsey and Meridith McGraw report. The fate of the sectoral tariffs, as well as duties on Mexico and Canada that Trump said were justified by fentanyl trafficking, remains uncertain.

The focus of the reciprocal action appears to be more targeted than originally thought, with the focus on about 15% of countries with persistent trade imbalances with the U.S., a group Treasury Secretary Scott Bessent called the "dirty 15."

Small businesses are struggling to cope with the impact of Trump's tariffs, with many reporting a sharp decline in sales and profits. (WSJ) The biggest automotive losers so far in Trump's trade war are about a dozen luxury models like BMW's 3 Series sedan. (WSJ) Timeline: How Trump's trade war is playing out at breakneck speed. (WSJ) Number of the Day In Other News

U.S. regulators recommended the inspection of 68 bridges to determine the risk of a collapse from a vessel collision like the one in Baltimore last year. (WSJ)

The Pentagon is dispatching another aircraft carrier group to the Middle East following the restart of war in Gaza and U.S. airstrikes on Yemen's Houthi militia. (WSJ)

Boeing beat out Lockheed Martin for the contract to produce the F-47 , the Pentagon's next-generation jet fighter. (WSJ)

Companies promising to wean the country off fossil fuels are pivoting to show how their products benefit national security or advance artificial intelligence. (WSJ)

China is pushing its commercial space industry to grow in a bid to spur greater innovation and close the gap with Elon Musk's SpaceX. (WSJ)

Trump invoked emergency powers to boost U.S. capacity to produce critical minerals and rare earth elements. (Bloomberg)

FedEx expanded its Sunday home delivery capabilities again to meet demand from its largest customers. (Supply Chain Dive)

A Mediterranean Shipping-operated containership lost at least 15 containers overboard during a storm off the coast of Portugal. (Splash 247)

Small factories in Japan are holding public tours and taking other steps to revamp their image and attract workers. (Nikkei Asia)

DP World is poised to begin a $1.3 billion expansion of its London Gateway port that will add 50% capacity to the U.K.'s logistics sector. (Maritime Executive)

Companies along the U.S. food supply chain got a 30-month reprieve from the Food and Drug Administration's new food tracking rules. (DC Velocity)

About Us

Mark R. Long is editor of WSJ Logistics Report. Reach him at [mark.long@wsj.com]. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long , Liz Young and Paul Berger .

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

March 24, 2025 07:28 ET (11:28 GMT)

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