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Fees on Chinese Ships Advance; U.S. Exports at Risk; Slow Spring for Home Builders By Mark R. Long

The U.S. moved forward with a dialled-back plan to charge Chinese ships calling at American ports, part of the Trump administration's effort to counter Chinese ocean-shipping dominance and revive domestic shipbuilding.

A key change from the original proposal, the WSJ's Liz Young and Costas Paris report, is that ships will be charged per voyage to the U.S., not for each call at an American port . Carriers, importers, exporters, farm groups and others warned in public comments that charging for each port call would sharply raise prices for American consumers and businesses, and could devastate secondary ports such as Oakland. The USTR on Thursday said that, starting in six months, Chinese-owned and operated vessels would be charged steep fees that would go up over time based on net tonnage. Chinese-built ships operated by non-Chinese carriers will be charged less, based on net tonnage or by container.

The plan would directly hit China's Cosco, the world No. 1 shipping and logistics company, though it also will affect big Western carriers such as A.P. Moeller-Maersk and Mediterranean Shipping, which own many Chinese-built vessels. The USTR declined to impose fees based on a company's prospective orders of Chinese-built vessels, following industry pushback.

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Number of the Day Trans-Pacific Trade

Imports from China have taken the lion's share of attention as the trade war escalates, but the U.S. last year still sent $143.5 billion worth of energy, agricultural and other goods the other way across the Pacific.

Energy supplies and produce from just five states- Texas, California, Washington, Louisiana and North Carolina-make up nearly half of that amount , the WSJ's Harriet Torry and Alana Pipe report. These exports are at risk from 125% tariffs that Beijing slapped on inbound American goods in retaliation for President Trump's second-term levies that add up to 145%. Texas and Louisiana are especially vulnerable as oil prices have fallen with a clouding outlook for demand. Including liquefied natural gas, energy makes up 39% of Texas's exports to China, census data show.

Americans view bilateral economic ties as less beneficial to the U.S. than China, but hold skeptical views about addressing the relationship with tariffs, a survey shows. (WSJ) Chinese tech giants Tencent and ByteDance's Douyin are helping cross-border merchants sell goods in the domestic market. (WSJ) Taiwan Semiconductor Manufacturing said its six planned factories in Arizona will account for about 30% of global capacity in 2-nanometer and other advanced chips. (WSJ) U.S. specialty mineral producer MP Materials said it has ceased shipments of rare-earth concentrate to China. (Dow Jones Newswires) Quotable Slow Build

The critical spring home-building season is off to a disappointing start, with a drop in new-house construction in March and a home-building giant cutting its financial guidance, just as new tariffs threaten to jack up prices for imported materials.

The Journal's Rebecca Picciotto reports that housing starts fell 11.4% in March from February, the steepest drop in a year , according to census data. Meanwhile D.R. Horton missed forecasts for its quarterly earnings and said it expected lower revenue and fewer home closings amid muted demand. Single-family-home construction starts led the downshift, falling 14.2% in March from February. On top of stubbornly high house prices and mortgage rates, builders also are vulnerable to tariff-related cost hikes on steel, glass, lumber and other imported materials. About 7% of goods used in home construction are imported. The threat of deportation of workers without permanent legal status also looms over the industry. In Other News

The European Central Bank cut interest rates to offset the economic blow of tariffs. (WSJ)

The global economy will grow more slowly as a result of new tariffs and countermeasures, but will avoid a recession, the head of the International Monetary Fund said. (WSJ)

Trump lashed out at Fed Chair Jerome Powell, hinting at potentially dismissing the central bank leader. (WSJ)

Japan's exports rose for a sixth straight month in March but at a much slower pace as concerns over tariffs weigh on global trade. (WSJ)

South Korea's central bank held interest rates steady in April, taking a breather as it gauges how best to support an economy hit by U.S. tariffs. (WSJ)

Alcoa's CEO said tariff-related costs on imports of aluminum will likely result in a $100 million annual headwind. (WSJ)

BHP Group's CEO said a tariff war could slow the global economy and fracture world trade, as the world's No. 1 miner reported higher copper output. (WSJ)

Hermes plans to raise prices in the U.S. to mitigate the effects of tariffs. (WSJ)

Two tractor-trailers with automated truck-platooning tech began traveling I-70 between Columbus, Ohio, and Indianapolis, delivering shipments for EASE Logistics. (American Journal of Transportation)

A total of 54 ships and their crews have been abandoned so far this year, according to International Labour Organization data. (Splash 247)

Airbus is ending commercialization of its heavylift Beluga aircraft. (The Loadstar)

Here is our weekly roundup of stories from across WSJ Pro that we think you'll find useful.

President Trump wants to rapidly revive the U.S.'s commercial shipping fleet as a matter of national security. America doesn't have enough sailors to do it. Nuclear energy is hot again . Can AI help manage the power plants? U.S. private-equity exits and their total value rose in the first quarter from a year earlier , but recent market volatility puts that momentum at risk. J.M. Smucker, the owner of Hostess baked goods like Twinkies and Ding Dongs, is courting a new group of snackers : stoners. 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

April 18, 2025 07:02 ET (11:02 GMT)

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