Trade Tensions Return: US and China Hit Each Other with New Port Fees

Trade tensions between the United States and China reignited this week as both nations imposed new port fees on each other’s ships, marking the latest escalation between the world’s two largest economies.

China’s Ministry of Commerce announced that its levies target US-owned, operated, built, or flagged vessels, exempting Chinese-built ships. Officials described the move as a necessary response to what they called “discriminatory” US measures, which Washington says are intended to protect American shipping companies.

The new Chinese fees — 400 yuan ($56) per net tonne — mirror the port charges implemented by the US earlier this year. These rates are set to rise annually, reaching 1,120 yuan per tonne by April 2028. Analysts estimate that large dry bulk ships could face up to $10 million in port fees within three years, adding substantial cost pressures to global trade and logistics networks.

The retaliatory action follows a series of steps by both countries in recent weeks. Alongside the port fees, Beijing has tightened controls on rare earth exports and sanctioned five US-linked subsidiaries of South Korea’s Hanwha Ocean. The US, meanwhile, has implemented new tariffs on imported timber, kitchen cabinets, and upholstered furniture—much of which originates in China.

Despite the tensions, US Treasury Secretary Scott Bessent said communication lines remain open. He confirmed that President Donald Trump and China’s President Xi Jinping are still expected to meet later this month in South Korea to discuss ways to de-escalate the standoff.

For now, the tariffs and port fees signal that the trade truce announced earlier this year is on shaky ground. As both nations dig in, the cost of this renewed rivalry may be felt not just in shipping lanes, but across global markets reliant on their cooperation.