After receiving strong opposition from businesses and shipping organizations, the Trump administration is considering its strategy to establish high port fees on China-linked boats, according to News Week.
The US Trade Representative’s company first released the proposal in February as part of a larger plan to reduce rely on Chinese-built ships. However, detractors warn that it could hurt the US market more than it can help.
Boats built in China or run by Chinese companies would be subject to the proposed$ 3 million port call fee. Since many international vessels have connections to China, many trade representatives claimed during public hearings that this could disrupt supply chains and increase costs. They also made it clear that replacing these boats would take decades, as US manufacturing has fallen drastically from 70 ships per year in 1975 to simply five now.
Solutions told Reuters that the management is presently considering alternatives. Using a adjustable cost model, such as charging based on fleet size or the proportion of Chinese-built warships in a ship, is one of the measures.
Trade Representative Jamieson Greer stated on Tuesday that the organization is thoroughly reviewing open comments. He told the Senate Finance Committee,” We want to improve manufacturing at home without stumbling our own economy.”
This comes as the US begins imposing fresh tariffs on Chinese imports on Wednesday. China has announced its own 34 % tax on US products as a reply, escalating trade tensions between the two nations.
