In a significant step toward easing trade tensions, the United States and China have agreed to suspend port levies imposed on each other for one year. The announcement followed a high-level meeting between US President Donald Trump and Chinese President Xi Jinping in Busan, South Korea, marking a temporary thaw in strained maritime and trade relations.
Port Fee Suspension and Broader Trade Truce
According to China’s Ministry of Commerce, the United States will suspend for one year the implementation of its Section 301 measures targeting China’s maritime, logistics, and shipbuilding industries. In response, China will pause its corresponding countermeasures against US vessels and companies.
US trade envoy Jamieson Greer also hinted at delaying the investigation into China’s shipbuilding sector, signaling a broader intent to stabilize relations. The move follows earlier negotiations between trade teams in Kuala Lumpur, which set the groundwork for the Busan summit.
Background: Rising Maritime Tensions and Industry Impact
The suspension comes after months of mounting tension between the two nations. In April, the US Trade Representative introduced new port fee rules on Chinese-linked vessels, citing unfair competition in logistics and maritime services. China’s Ministry of Transport quickly retaliated with equivalent levies on US vessels, both taking effect on October 14.
The mutual tariffs were expected to ripple across global shipping, affecting asset values, newbuilding orders, logistics costs, and route strategies. Analysts projected that Cosco Shipping, China’s largest state-owned carrier, could face losses exceeding $1 billion in the first year alone.
According to a recent Linerlytica report, lifting the twin levies could bring relief to carriers entering the industry’s slack season in November, though it may also weaken attempts to raise freight rates amid continued overcapacity.
Additional Agreements and Policy Adjustments
Beyond the suspension of port fees, the two sides reached several other agreements:
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The US will halve tariffs on China related to fentanyl issues to 10%, with China adjusting its countermeasures accordingly.
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The Bureau of Industry and Security’s “50% Rule” on export controls, adopted on September 29, will be suspended for one year.
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China will pause enforcement of its rare earth export restrictions introduced on October 9.
While the move signals short-term cooperation, both governments have yet to clarify when fee collections will cease or whether previously paid charges will be refunded.
The Trump–Xi agreement represents a rare moment of restraint amid escalating maritime and trade disputes. Although the one-year suspension of port levies offers temporary relief to global shipping markets, industry observers remain cautious. Without structural progress on underlying trade and industrial policy disputes, the truce could prove to be a brief pause rather than a lasting resolution
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Source: Government of Dubai
