By Daniel Munch, Economist, American Farm Bureau Federation
With more than 20% of U.S. agricultural production destined for foreign markets, exports are critical to the financial success of American farmers and ranchers. In 2024, U.S. farmers exported over 144 million metric tons of agricultural products, valued at more than $105 billion, through ocean ports.
These ocean shipments represented nearly 60% of total agricultural export value and 65% by volume, underscoring the vital role of maritime transport in delivering U.S. agriculture to global customers. However, recent proposals to impose substantial fees on Chinese-built and -operated vessels entering U.S. ports could have far-reaching consequences for agricultural trade.
Proposed Fees on Chinese-Built and -Operated Vessels
The Trump administration has proposed a series of fees targeting ocean carriers with ties to China. These fees are part of broader efforts to counter China’s growing dominance in global shipbuilding and logistics, while attempting to stimulate U.S. shipbuilding capacity. The proposal includes:
Fees up to $1 million per entrance on Chinese-operated vessels.
Fees up to $1.5 million on Chinese-built vessels, scaled based on the percentage of an operator’s fleet built in China.
Additional fees on operators with future orders placed with Chinese shipyards.
A gradual requirement to shift a growing percentage of U.S. exports onto U.S.-flagged and U.S.-built vessels.
The U.S. Trade Representative’s (USTR) office argues these measures are necessary to counteract China’s unreasonable targeting of the maritime, logistics and shipbuilding sectors for dominance. The concern is that China’s monopolization reduces competition, displaces foreign firms and increases dependencies on Chinese supply chains. The fee proposals are currently open for public comment until March 24, with a public hearing scheduled on the same day.
Following the hearing and review of public feedback, USTR will decide on how to implement the proposed measures.
