Maritime Taxation: U.S. and China Escalate Trade War on the High Seas

The United States and China have opened a new front in their trade war, targeting the maritime industry with newly instituted port fees starting Tuesday. These charges will affect ocean shipping firms moving various goods, adding tension between the two economic superpowers.

China announced that it started collecting special charges on U.S.-owned, operated, built, or flagged vessels, while exempting Chinese-built ships. The U.S. plans to levy similar fees beginning October 14, with implications for the Chinese container carrier COSCO, expected to incur nearly half of the anticipated $3.2 billion cost by 2026.

The reciprocal port fees have caused concern over potential distortions in global freight flows. Analysts warn of a spiral of maritime taxation and maritime statecraft, as the Trump administration threatens further tariffs in response to China's curbs on critical mineral exports.

(With inputs from agencies.)