Key Points
- The U.S. and China have agreed to suspend retaliatory shipping fees on each other’s vessels for one year.
- This decision de-escalates a specific dispute within their larger trade war.
- The U.S. initiated the fees on October 14 as part of an investigation into China’s maritime and shipbuilding industry.
- The U.S. remains focused on reviving its shipbuilding sector and is collaborating with allies such as Japan and South Korea.
The United States and China have agreed to stop charging special shipping fees on each other’s vessels for one year. This move, announced by Beijing, defuses a disagreement that had become a major issue in their ongoing trade war.
Washington started charging special fees on China-linked ships entering American ports on October 14. This happened as the Office of the U.S. Trade Representative investigated China’s strong position in maritime and shipbuilding. China’s Ministry of Commerce stated on Thursday that the U.S. will pause any actions from that investigation for a year.
Beijing’s statement said, “Following the US suspension, China will also suspend its countermeasures against the US for one year.” This refers to China’s retaliatory tariffs on American ships, which also began on October 14.
China’s announcement came just hours after U.S. Trade Representative Jamieson Greer said the U.S. is still focused on bringing back American shipbuilding. “We’re trying to rebuild shipbuilding,” he said on Air Force One, when asked if President Donald Trump and Chinese leader Xi Jinping had agreed on port fees during their meeting in South Korea.
In recent months, international shipping has been troubled by back-and-forth port charges between the U.S. and China, which have driven up freight costs. These fees are part of a larger competition between the two countries over who builds more ships.
The U.S. is trying to compete with China in shipbuilding and has sought help from its allies, Japan and South Korea. This week, Washington signed agreements with Tokyo and Seoul for more cooperation in this area.
In response, Beijing sanctioned the U.S. branches of a major South Korean shipbuilder earlier this month. China claimed that Hanwha Ocean Co.’s American entities helped Washington investigate China’s dominance in maritime and shipbuilding. China has also said it will look more closely at U.S. actions concerning its shipping sector.
