The U.S. and China have reignited their trade war with new port fees, transforming global shipping lanes into the latest battleground.
On October 14, 2025, both the United States and China initiated new port fees targeting each other's vessels, escalating their ongoing trade dispute according to Reuters. The U.S. began imposing fees on ships owned, operated, built, or flagged by China, aiming to reduce China's dominance in global maritime logistics. In retaliation, China introduced similar fees on U.S.-linked ships, exempting those built in China, and sanctioned U.S.-linked subsidiaries of South Korean shipbuilder Hanwha Ocean.
China's Retaliatory Measures and Exemptions
China's new port fees apply to U.S.-owned, operated, built, or flagged vessels, with exemptions for ships built in China, empty vessels entering Chinese shipyards for repairs, and certain other vessels specified by authorities. The fees are to be paid at the ship's first Chinese port of entry or will apply to the first five voyages within a year. The billing cycle for the fees starts annually on April 17, and unpaid dues will halt a ship's import/export processing.
U.S. Response and Escalation
In response, U.S. President Donald Trump declared an increase in tariffs on Chinese goods to 100% beginning November 1 and introduced new export controls on critical software. The U.S. Treasury Secretary accused Beijing of deliberately trying to damage the global economy by restricting rare earth exports, calling it a desperate attempt to pull others down due to its faltering economy according to The Guardian.
Impact on Global Shipping and Market Reactions
The new port fees are expected to significantly impact the shipping industry. Ships carrying dry bulk cargoes like coal and other raw materials could have to pay up to $3 million in port fees from October 14, 2025. By 2028, some of the biggest vessels that carry nearly 200,000 tonnes in dry bulk could have to pay more than $10 million in fees. Analysts expect Chinese-owned container carrier COSCO to be most affected, shouldering nearly half of that segment's expected $3.2 billion cost from those fees in 2026.
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Diplomatic Efforts Amidst Rising Tensions
Despite the escalating tensions, U.S. Treasury Secretary Scott Bessent stated that President Trump and China's President Xi Jinping are still expected to meet in South Korea in late October to discuss de-escalation strategies. Both sides have expressed a willingness to engage in dialogue, with China stating, "If there's a fight, we'll fight to the end; if there's a talk, the door is open".
FAQs (People Also Ask)
What are the new port fees being imposed by the U.S. and China?
The U.S. is charging fees on ships owned, operated, built, or flagged by China, while China is imposing similar fees on U.S.-linked ships, with certain exemptions.
Which ships are exempt from China's new port fees?
Ships built in China, empty vessels entering Chinese shipyards for repairs, and certain other vessels specified by authorities are exempt from China's new port fees.
How will these new port fees impact global shipping costs?
The new port fees are expected to significantly increase shipping costs, particularly for vessels carrying dry bulk cargoes, with potential fees reaching up to $10 million per vessel by 2028.
Are there any ongoing diplomatic efforts to resolve the trade tensions?
Yes, U.S. President Trump and China's President Xi Jinping are expected to meet in South Korea in late October to discuss de-escalation strategies and address the rising trade tensions.
Conclusion: Navigating the Stormy Seas of Trade
The imposition of new port fees by both the U.S. and China marks a significant escalation in their trade tensions, with potential ripple effects across global shipping and trade. As both nations navigate these turbulent waters, the upcoming diplomatic discussions between President Trump and President Xi Jinping will be crucial in determining whether a path toward de-escalation can be found. The international community watches closely, hoping for a resolution that preserves global trade stability.
