Trade tensions between the United States and China flared again on Tuesday as both countries imposed new port fees on each other’s ships, marking another escalation in the long-running economic rivalry between the world’s two largest economies.
The latest development saw China retaliate against Washington’s recent maritime levies by introducing steep port charges on all US-owned, operated, built, or flagged vessels. Chinese authorities said the new measures were designed to protect their shipping industry from “discriminatory” US policies.
Beijing’s move mirrors the US port fees announced earlier this month, which Washington claimed were necessary to support American shipping companies and ensure fair competition.
However, China accused the US of violating a long-standing maritime transport agreement between both nations.
According to Chinese state broadcaster CCTV, the new Chinese port fees will start at 400 yuan ($56) per net tonne, with rates scheduled to rise annually to 1,120 yuan per tonne by April 2028.
The duties will also apply to ships operated by US companies or any in which American firms hold at least a 25% ownership stake.
Freight analysts say the impact could be severe for global shipping. Claire Chong, a freight expert with Thurlestone Shipping, estimated that bulk carriers transporting raw materials like coal and iron ore could now face up to $3 million in additional port costs.
By 2028, that figure could surpass $10 million for the largest vessels, dramatically raising freight expenses worldwide.
“This adds significant pressure on an already volatile shipping market,” Chong said. “But Chinese-built ships—almost half of the global dry bulk fleet—are exempt, which gives local operators a clear advantage.”
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The new fees come alongside China’s decision to sanction five US subsidiaries of South Korean shipbuilder Hanwha Ocean, a move analysts see as part of Beijing’s broader effort to retaliate against US restrictions.
Meanwhile, the United States also brought fresh tariffs into force on imported timber, kitchen cabinets, and furniture, many of which are sourced from China. The actions have reignited fears of a wider trade conflict reminiscent of the tariff wars that disrupted global supply chains in 2018–2019.
Despite the heightened rhetoric, US Treasury Secretary Scott Bessent insisted that diplomatic engagement remains on track. He confirmed that President Donald Trump and Chinese President Xi Jinping are still expected to meet in South Korea later in October to discuss a potential de-escalation.
“The 100% tariff doesn’t have to happen,” Bessent said. “Lines of communication have reopened, and the relationship, despite these announcements, remains good.”
In response, a Chinese commerce ministry spokesperson warned that the US could not “demand dialogue while simultaneously imposing new restrictive measures.” The official added that while China was open to talks, it was equally prepared to “fight to the end” if provoked.
The dispute threatens to unravel the tariffs truce reached earlier this year, when both nations agreed to roll back some of their harshest trade barriers. Now, as each side returns to retaliatory tactics, businesses fear a fresh wave of price increases, supply chain delays, and uncertainty.
Economists warn that the renewed confrontation could spill into other sectors—including technology and rare earth exports—intensifying the economic rivalry that continues to define US-China relations.
BBC
