• China retaliates with port fees as US tariff dispute escalates
• Beijing residents dismiss US pressure, see limited impact on daily life

BEIJING: China will begin levying port fees on US-built, owned, operated, or flagged vessels from Tuesday, in a direct response to similar char­ges being introduced by the United States on China-linked ships the same day, the Chinese transport ministry said on Friday, as reported by Reuters.

Later that day, US President Donald Trump announced an increase in tariffs on all Chinese exports to the US, raising them to 100 per cent from Nov 1, and unveiled new export controls on strategic software. The move came in response to China’s recent curbs on exports of rare earth minerals.

Although few US-flagged or built ships are engaged in international trade, China’s new port fee regime casts a wider net by targeting vessels where US-domiciled funds hold 25pc or more in shares or board seats. Analysts say this will significantly broaden the scope of affected companies, particularly those listed on US exchanges.

“This could affect many public shipping companies and cause substantial disruption,” said Erik Broekhuizen, a marine analyst at shipbroking firm Poten & Partners.

Several shipping firms are already preparing for dual exposure to port levies from both countries. US-based Matson has told customers it will be subject to China’s fees but will maintain its current schedule. Oil tanker companies, although largely based outside the US, may also be impacted if they are listed on US exchanges. Scorpio Tankers, one of the sector’s largest operators, is among those potentially affected.

Data from shipbroker Fearnleys shows nearly 10pc of the global very large crude carrier fleet, and 13pc of the Suezmax, Aframax and LR2 fleet, could be caught in the net.

Energy data firm Vortexa estimated that 43 LPG super tankers — or 10pc of the global fleet — may also be affected.

China’s own carriers, including state-owned COSCO and its subsidiary OOCL, will face reciprocal fees from the US. COSCO could incur costs of nearly $2bn in 2026, analysts said. COSCO did not issue a public response.

China’s transport ministry criticised the US port fees as “discriminatory”, accusing Washington of undermining global trade and shipping stability.

Fee structure, timeline

The new port levy in China will start at 400 yuan ($56) per net metric ton from Tuesday. The rate will rise to 640 yuan ($90) from April 2026, 880 yuan ($124) from April 2027, and reach 1,120 yuan ($157) by April 2028.

The US, for its part, has imposed a flat rate of $50 per net tonnage on vessels owned or operated by Chinese entities.

The escalation follows a fragile truce agreed in August, which paused new tariffs for 90 days. That truce is set to expire in early November. In the current round of hostilities, Chinese imports of US agricultural and energy goods have dropped sharply.

“I felt nothing when I saw the news,” said Liu Ming, a 48-year-old software employee. “Trump always announces such capricious policies. China is not afraid.” While policymakers clash, residents in Beijing expressed little alarm over Trump’s latest tariff threat.

Several residents interviewed by AFP described Trump as unpredictable, with one joking that his stance could shift after a nap. Others warned the tariffs could hurt American consumers more than the Chinese economy.

Published in Dawn, October 12th, 2025