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Trump tonnage tax could push box rates up by $250, says BIFA expert

[ June 12, 2025   //   ]

New US fees on Chinese vessels could eventually increase the cost of importing goods into the US by as much as $250 per container if proposals by President Trump are implemented in full, says BIFA senior policy advisor, Robert Windsor.

He told an episode of BIFALink TV on 12 June that, under the proposals recently unveiled by the US Trade Representative (USTR), taxes could apply , initially to bulk vessels, from as early as October this year. From that date, Chinese owned and operate vessels would have to pay a tonnage tax of initially $50 a tonne, rising in increments to $140 a tonne by April 2028.

Fees would also be charged on ships built in China (but operated by non-Chinese companies) of $18/tonne, rising to $33/t by April 2028.

For containers, suggested fees would start off at $120 per container discharged but this would eventually increase to $250.

There would be some exemptions, Windsor added. Ships coming from ports less than 2,000 nautical miles away would not pay the tax, which would presumably mean the US’s large trades with countries such as the Caribbean or Mexico would not be affected. However, it was not yet clear if cargo loaded on ships departing from the Far East, calling at nearer ports and then continuing on to the US would be subject to the tax.

Windsor added that agents in the US charged with collecting the fees would need to obtain expensive guarantees.

A second strand of the legislation would be the US Ships Act, designed to encourage a revival of commercial shipbuilding in the country. This would impose taxes on, initially, vessels built by the China State Shipbuilding Corporation, with the prospect of it being extended to other Chinese builders. As well as US builders, this could also favour those in South Korea and Japan, said Windsor.

Other measures include a stipulation that a certain percentage of goods in and out of the US would have to be carried in US-built ships, initially just 1% but rising by 1% for 14 years. However, it remained to be seen if the US had the ship building capacity to build enough vessels to fulfil this requirement, especially as the programme would have to continue through more than one Presidential term of office, Windsor said.

With Chinese-built vessels accounting for around 20% of global container trade, it was possible that shipping line alliances would seek to use non-Chinese-built ships on trades in and out of the US in future.

Also, has been seen with the recent increases in import duties, ‘front loading’ could occur as importers tried to beat any impending increases in the cost of shipping by importing goods ahead of the deadline.

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