US-China Port Fees Take Effect, Escalating Trade Tensions at Sea

The United States and China have started imposing additional port fees on ocean shipping companies, escalating tensions in the ongoing trade war. The fees affect vessels carrying everything from consumer goods to crude oil, turning international shipping routes into a new battleground between the two economic powers.

The port charges follow last week’s escalation, when China expanded rare earth export controls, and President Donald Trump threatened to raise tariffs on Chinese imports to triple digits. Both nations, however, attempted to reassure traders over the weekend, emphasizing negotiations and potential compromises.

China announced fees on US-linked vessels but exempted Chinese-built ships and empty vessels entering shipyards for repair. The charges are applied either on a ship’s first port of entry or for the first five voyages in a year. According to shipping analysts at Athens-based Xclusiv Shipbrokers, the "tit-for-tat symmetry risks distorting global freight flows."

The US introduced similar fees earlier in 2025, aiming to reduce China’s influence over maritime logistics and boost domestic shipbuilding. In response, Beijing imposed fees on US-flagged vessels and sanctioned subsidiaries of South Korean shipbuilder Hanwha Ocean, which supports US maritime projects.

Shipping companies are scrambling to adapt. Major carriers like COSCO, Maersk, Hapag-Lloyd, and CMA CGM have shifted vessels to avoid penalties, while some traders explore rerouting cargoes mid-voyage. Analysts estimate that a significant portion of global crude tankers, container ships, and LPG carriers could be affected.

The dispute now overlaps with environmental policy. The US warned countries supporting IMO greenhouse gas reduction measures for shipping that they could face sanctions or vessel penalties. China, a supporter of the IMO plan, has called for dialogue, but the situation underscores how shipping is increasingly used as a tool of statecraft.

Shares of Shanghai-listed COSCO rose over 2% after announcing a share buyback to maintain corporate value amid the port fee dispute.