The White House has announced a one-year suspension of all responsive actions stemming from the Office of the U.S. Trade Representative’s (USTR) Section 301 investigation into China’s maritime, logistics, and shipbuilding sectors, reports gCaptain.
The suspension will take effect on November 10, 2025, marking a significant pause in ongoing trade tensions between the two economic powers. The decision follows a bilateral agreement reached between U.S. President Donald Trump and Chinese President Xi Jinping during their meeting in South Korea last week. As part of the arrangement, China will also halt its own retaliatory measures against U.S. shipping and maritime-related industries for the same duration.
U.S. suspends port fees amid trade deal with China
The suspended measures include special port fees that had been imposed on China-linked vessels calling at U.S. ports, tariffs on Chinese-manufactured ship-to-shore cranes and cargo-handling equipment, and additional fees on foreign-built vehicle carriers. Requirements related to LNG shipping and incentives tied to U.S.-based vessel construction are also being paused. According to U.S. officials, the suspension aims to create space for further negotiations under the Section 301 framework while fostering collaboration with allies such as South Korea and Japan to strengthen the American shipbuilding industry.
Reactions across the industry have been divided. Shipping associations and trade groups welcomed the decision, describing it as a positive step toward restoring normalcy to global trade routes disrupted by the tariffs and port fees. Many industry leaders highlighted that removing these barriers will benefit exporters, farmers, and consumers by keeping transportation costs lower and improving supply chain efficiency.
However, labor organizations remain cautious. The United Steelworkers union, which had originally petitioned for the Section 301 investigation in 2024, criticized the decision as a temporary truce that leaves deeper structural issues unresolved. The union emphasized that the U.S. still faces an uphill battle in reviving its commercial shipbuilding capacity, as it currently ranks far behind major producers like China and South Korea.
The Section 301 probe had concluded earlier this year that China’s state-backed industrial policies and subsidies gave its shipbuilding sector an unfair advantage in global markets. The U.S. had labeled these practices “unreasonable” and “burdensome” to American interests. By pausing the responsive measures, Washington is signaling a willingness to re-engage diplomatically, though it has made clear that the suspension does not represent a permanent resolution.
While the move provides short-term relief for shipping companies and traders, it leaves open important questions about long-term trade policy. Observers are watching to see whether China will commit to policy changes in its maritime and shipbuilding industries and how the U.S. will use this period to rebuild its domestic manufacturing base. The regulatory details of the suspension, including its implementation and transition measures, will be closely scrutinized in the coming weeks.
For now, the one-year suspension marks a de-escalation in U.S.–China trade tensions and a reprieve for the global shipping industry. Yet, the fundamental issues driving the dispute remain unresolved, setting the stage for another round of negotiations and potential policy shifts in the year ahead.
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Source: gCaptain
