Following from the general uncertainty regarding the tariffs sought to be imposed by the United States of America (“US”) on the People’s Republic of China (“China”), the US Trade Representative issued final proposals on 17 April 2025, seeking to: (i) impose fees on Chinese-owned, Chinese-operated and/or Chinese-built vessels; and (ii) instead shift towards favouring US-built, US-flagged and US-operated vessels. This marks a landmark moment for the global maritime and shipbuilding sectors.

China has responded to warn that the new fees will ultimately fail in their stated aim of revitalising the US shipbuilding industry, and will be detrimental to all parties, drive up global shipping costs, disrupt the stability of global production and supply chains, increase inflationary pressure within the US, and harm the interests of US consumers and businesses.

This Update covers the significant aspects of these proposals, including the categories of fees to be imposed across two phases, and the available exemptions. It also discusses their potential impact on various businesses (especially for container carriers, car carriers and larger tankers, such as very large crude carriers) which look to be the hardest hit by the imposition of these fees.