USTR Formalizes One-Year Suspension of Section 301 Punitive Actions Against China

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Mfame Editor
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The Trump administration formally announced plans to pursue negotiations with China over its dominance of shipbuilding and ocean logistics while confirming a one-year pause on U.S. port fees as part of a deal to reduce trade tensions.

Formalizing the Fee Suspension

  • Action: The U.S. Trade Representative’s (USTR) office published a notice in the Federal Register formalizing the one-year pause on all “Section 301” punitive actions against China, effective November 10, 2025.
  • Scope: The reprieve covers an estimated $3.2 billion annually in U.S. fees for large Chinese-built vessels calling at U.S. ports. Also paused were 100% tariffs on ship-to-shore cranes and container intermodal chassis for trucks.
  • Negotiation Link: The USTR notice stated the suspension is conditional on a broader deal, noting, “The United States would suspend for one year… the responsive actions taken in this investigation,” and “The United States also would negotiate with China pursuant to Section 301 regarding the issues raised in this investigation.”
  • Timeline: The USTR accepted public comments on the matter on November 6 and November 7.

Negotiations and Reciprocal Actions

  • Focus: The U.S. will pursue negotiations with China concerning its dominance in shipbuilding and ocean logistics, although the notice gave no immediate details on the objectives or start date of these talks. The U.S. will also continue its own efforts to revitalize domestic shipbuilding.
  • China’s Action: China reciprocated the de-escalation by agreeing to pause its own retaliatory fees on U.S.-linked ships. Hawaii-based shipping company Matson reported paying $6.4 million in port fees to China since the retaliatory fees were implemented on October 14.
  • Impact on Chinese Shippers: State-owned container line COSCO is considered the Chinese shipper most exposed to the U.S. port fees, with analysts estimating the potential cost could be up to $1.5 billion annually if the fees were active.

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Source: Reuters