Country vs Country

US proposes two more months’ pause on port fees for China-linked ships

The trade representative’s office wants to keep the Section 301 vessel charges switched off until 9 January 2027, but the plan is not final and Beijing has not said whether it will match it.

The blue-hulled container ship COSCO Shipping Star moored beneath ship-to-shore cranes at a container terminal in Hamburg
A COSCO container ship at a Hamburg terminal; the Chinese carrier is among the lines most exposed to the suspended US port charges. Photo: Raimond Spekking / Wikimedia Commons, CC BY-SA 4.0

In brief

  • USTR has proposed extending the suspension of port fees on Chinese-owned, -operated and -built vessels from 10 November 2026 to 9 January 2027.
  • The current pause, agreed as part of the 2025 Trump–Xi truce, otherwise lapses on 9 November.
  • Comments are due by 30 October; the notice does not say whether China will extend its own counter-fees on US-linked ships.
  • Treasury Secretary Scott Bessent had already said in September that the wider truce would run to 10 January, but only a Federal Register notice can change the legal deadline.

Washington wants more time before deciding whether to switch its port charges on China-linked ships back on. The Office of the US Trade Representative has proposed keeping the fees suspended for roughly two more months, from 10 November 2026 to 9 January 2027, according to a notice reported by gCaptain on 23 October and due in the Federal Register on 26 October.

The fees grew out of a Section 301 investigation, opened under the Biden administration after a 2024 petition from the United Steelworkers and other unions, which concluded that Chinese state support for shipbuilding distorted competition. Collection started on 14 October 2025 but stopped on 10 November that year, when the charges were frozen for 12 months as part of the trade deal Donald Trump and Xi Jinping struck in South Korea. China paused its retaliatory fees on US-linked vessels at the same time.

A political promise, a legal deadline

The proposal catches the paperwork up with politics. Treasury Secretary Scott Bessent said on 23 September, as Xi arrived in Washington, that the broader truce would be extended to 10 January. Tech Times pointed out that, legally, only a new notice could move the 9 November expiry, and none had been published at the time. The proposed date in USTR’s notice is one day earlier than the date Bessent gave.

Under the extension, shipowners would also stay clear of the related duties on Chinese ship-to-shore cranes and cargo-handling equipment. USTR said it was still engaging Beijing with the aim of eliminating the practices at issue.

Who is pushing which way

Carriers have welcomed the breathing space. Under the April 2025 schedule, Chinese-owned or -operated vessels would pay $50 per net ton per voyage, rising each year, and COSCO alone faced an estimated $1.5bn a year in US charges. Matson has reported paying $6.4m in Chinese counter-fees during the few weeks the measures were live. On the other side, maritime unions and Senators Mark Kelly and Elizabeth Warren have urged immediate reinstatement, arguing the fees are central to reviving US shipbuilding.

Short, rolling extensions keep the fees alive as a bargaining chip without letting them bite.

What to watch

  • Whether USTR finalises the extension after comments close on 30 October.
  • Whether China’s Ministry of Transport extends its own suspension of fees on US-linked vessels.
  • Any wider deal before January that could make the pause permanent, or let it lapse.

How we got here

  1. 14 Oct 2025US starts collecting Section 301 port fees; China imposes counter-fees.
  2. 10 Nov 2025Both sides suspend their fees for a year under the Trump–Xi truce.
  3. 23 Sep 2026Bessent says the truce will run to 10 January 2027.
  4. 23 Oct 2026USTR proposes extending the fee suspension to 9 January 2027.

Sources

TradeWar wrote this article from the public reporting and documents below. Figures and statements are attributed in the text.

  1. USTR Proposes Extending China Ship Port Fee Suspension Through January 2027 gCaptain, 23 Oct 2026
  2. USTR Section 301 Chinese Ship Fees Still Expire November 9 Despite Bessent’s Truce Extension Tech Times, 29 Sept 2026