The recent imposition of reciprocal port fees by the US and China marks a significant, new phase in their trade tensions, effectively utilizing maritime logistics charges as a geopolitical tool analogous to tariffs.
Reciprocal Fee Implementation
Both the United States and China have introduced new, differential port fees targeting vessels linked to the other country, creating a novel form of trade restriction.
- Effective Date: The reciprocal fees in both countries came into effect simultaneously on October 14, 2025.
- Geopolitical Tool: This is an unprecedented use of port fees, which are traditionally based on a vessel’s physical characteristics, to levy charges based on a vessel’s country-specific association. This shifts the battleground of the US-China trade war into the maritime sector.
- China’s Rationale: The Chinese measures are a direct, tit-for-tat response to the earlier US announcement and were brought into effect after revisions to the Chinese International Maritime Transport Regulations. These revisions allow China to respond when a country “adopts, assists or supports discriminatory restrictions against operators, ships or crew members of China.”
Ambiguities in Regulations
The regulations establishing the new port fees contain critical ambiguities, largely mirroring each other in their lack of clarity on key definitions.
- Vessel Linkage Criteria: The fees in both states are levied on incoming vessels based on multiple criteria linked to the other country, including ownership, operation, flag, and place of build.
- Lack of Definition: A primary concern for the industry is the lack of clarity regarding how the terms “ownership” and “vessel operator” are definitively assessed.
- Unresolved Issues: The US Trade Representative (USTR) issued a memorandum shortly before the fees took effect but failed to provide the widely awaited Frequently Asked Questions (FAQ) or address these important definitional issues. Similarly, the official Chinese Implementation Measures Notice left the definition of “vessel operator” unclear.
- Broad Interpretation Risk: Due to the near-symmetrical nature of the measures, it is speculated that if the US adopts a broad interpretation of these terms, China will likely follow suit, expanding the scope of vessels subject to the charges.
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Source: Gard
