Posted on April 23, 2025
US ports oppose USTR tariff proposal on STS cranes and cargo handling equipment made in China; propose new bill for production tax credits on US-made STS and MH cranes.
With the latest proposal from the United States Trade Representative (USTR) to impose a 100% tariff on Chinese STS cranes, the price of these cranes for US ports is set to rise by as much as 270% when combined with existing duties, including the recent 145% tariffs on Chinese goods and a separate 25% levy introduced during the Biden Administration targeting Chinese-made STS cranes.
The tariffs are proposed as a targeted response to the findings of the Section 301 investigation into China’s trade practices, driven by US security concerns and a desire to rebuild its manufacturing and maritime industries. In addition to STS cranes, the new proposal also includes additional duties ranging from 20% to up to 100% on containers, including “containers for the transport of fluids” (tank containers), trailers and semi-trailers, as well as “other vehicles, not mechanically propelled; and parts thereof.”
Last year, US ports strongly opposed the 25% tariff and lobbied for exemptions for cranes already on order. In response, the USTR announced in September 2024 that STS cranes ordered before 14 May 2024 and delivered by 14 May 2026 would be exempt from the new tariff, providing temporary relief for port authorities and terminal operators with equipment already in the pipeline. Even with the 25% tariff, Chinese STS cranes are already much more expensive, and a proposed increase to 270% has raised alarms among US ports that soaring costs could stall capacity upgrades and delay vital infrastructure projects.
“There are currently no domestic manufacturers of ship-to-shore cranes,” said Cary S. Davis, president and CEO of the American Association of Port Authorities (AAPA). “Without action from the Administration to create an incentive for their production, there won’t be for several years. High tariffs on ship-to-shore cranes, without affordable alternatives from either domestic or allied sources, function as a crippling tax on port development and seriously threaten our nation’s ability to expand cargo movement.” AAPA said it plans to submit comments opposing the proposed container handling equipment (CHE) tariffs ahead of the planned hearing set for May 19.
While Chinese crane makers offer competitive pricing, companies like ZPMC also bring the engineering expertise and proven track record needed for specialised equipment, such as the low-profile STS cranes recently ordered by the Port of Virginia, which cited ZPMC as the only supplier with a demonstrated ability to deliver such complex designs. Although firms including Mitsui, Stafford Crane Group and Konecranes have announced plans to explore or establish STS crane manufacturing in the US, the reality remains that domestic production is still significantly more expensive than sourcing from overseas.
To try to counter incentivise US production, AAPA is urging ports to lobby Congress to support the “Port Crane Tax Credit Act of 2025”, a draft bill aimed at incentivising the manufacturing of STS and mobile harbour cranes in the US. The bill seeks to introduce a production tax credit under Section 38 of the tax code, offering 40% credit for cranes produced in the US, rising to 60% for cranes with at least 90% domestic components.
The credit would phase out after 2035, with rates dropping to 25% in 2035 and 15% in 2036. The measure also includes restrictions on sourcing, requiring cranes to be built with US materials and components from allied nations to qualify. Credits would only apply to cranes manufactured or produced as part of the taxpayer’s regular trade or business. The bill proposes the amendment to enter into force for property placed in service after December 31, 2025. The AAPA argues that such incentives are essential to reshore crane manufacturing, which is currently dominated by Chinese suppliers, with China accounting for over 70% of global production of STS cranes, and avoid long-term reliance on imports.
