Beijing: The United States and China have entered a new phase of their ongoing trade confrontation, introducing reciprocal port fees on vessels from each country, marking the high seas as a central battlefield in their economic rivalry. Effective October 14, 2025, these levies will impact a wide range of cargo, from crude oil tankers to consumer goods, potentially reshaping global shipping flows.
China announced that its fees will apply to U.S.-owned, operated, built, or flagged vessels, while exempting ships constructed in China and empty vessels entering Chinese shipyards for repairs. The fees are calculated per voyage at the first Chinese port of entry or applied to the first five voyages within a year, with the annual billing cycle starting April 17. The move comes as a direct response to the U.S., which is set to begin collecting its own fees on China-linked vessels, aiming to weaken Beijing’s dominance in the global maritime and shipbuilding sectors.
Analysts warn that the tit-for-tat measures could significantly impact international shipping. Chinese container carrier COSCO is expected to shoulder nearly half of the anticipated $3.2 billion cost of the U.S. fees in 2026. Reports indicate that approximately 13% of crude tankers and 11% of container ships globally could be affected, raising concerns over disrupted freight flows and increased shipping costs. Athens-based Xclusiv Shipbrokers noted that this symmetrical taxation might lock both economies into a spiral that could distort global maritime trade.
Despite these concerns, some industry experts suggest the fees may have limited disruption, as companies are likely to pass costs onto consumers through higher prices. A Shanghai-based consultant advising on China trade remarked that, although shipping is already challenged, trade will continue with adjustments rather than halts.
The port fees escalation coincides with other U.S. measures, including threatened 100% tariffs on additional Chinese goods and new export controls targeting critical software by November 1. The Trump administration has also indicated potential sanctions or port restrictions on nations supporting international environmental regulations for shipping, signaling a merging of trade and environmental policy as tools of statecraft.
Market reactions have been immediate. Shares of COSCO rose over 2% in early trading, with the company announcing a plan to buy back up to 1.5 billion yuan ($210.3 million) of its shares to protect corporate value and shareholder interests. As both nations implement these measures, global markets and maritime operators are bracing for heightened uncertainty, highlighting how trade disputes now extend beyond tariffs into direct interventions in shipping logistics.
The unfolding tit-for-tat port fees dispute underscores the growing strategic use of global commerce by major powers, transforming the ocean into a stage for economic leverage and geopolitical maneuvering.