Posted on April 23, 2025
WASHINGTON — A study released in January by the office of the U.S. Trade Representative alleged that China subsidizes its shipbuilding industry by providing financial support and suppressing labor costs.
This puts American shipbuilders at an unfair disadvantage, making the U.S. dependent on China for shipbuilding. Now, to even the playing field, the Trump administration will impose fees on Chinese-owned and built ships docked at U.S. ports, based on cargo-carrying capacity. The tax will begin in six months and fees could increase in the coming years.
“In 2022, America built five commercial ships. China built 1800 commercial ships in 2022,” said Transportation Secretary Sean Duffy. “And so the president understands that if you’re going to be a global power, you actually have to build ships in your country.”
Earlier this month, President Donald Trump signed an executive order requiring federal agencies to craft a plan to deal with China’s shipbuilding practices.
Duffy, a former Wisconsin congressman, cautions that it will take the U.S. some time to counter China.
“We have to de-mothball some of our shipyards, but we have great locations around the country we can make these investments in and start to produce ships right away,” Duffy said. “And again, what the president’s thinking about is the cost, right? And so how can we be helpful in the federal government to drive down the cost of ships and make them competitive around the world?”
Wisconsin has a long history of shipbuilding, which is why Democratic Sen. Tammy Baldwin is praising the Trump administration for these penalties on Chinese ships.
“Wisconsin workers and shipbuilding companies can compete with anyone in the world – but they need a level playing field to do it,” Baldwin wrote in a statement. “This is a big step forward in cracking down on China’s unfair trade practices, supporting American workers and building more ships here at home, and keeping our country safe.”
China said the plan will fail and raise costs for American consumers. This comes as President Donald Trump has launched a trade war with China that some experts and businesses warn will also increase prices.
