News Release
FOR RELEASE - April 18, 2025
Contact: Shawn Balcomb, press@aapa-ports.org
American Association of Port Authorities
Phone: (202) 792-4033
www.aapa-ports.org
Washington, D.C. — Today, the American Association of Port Authorities (AAPA) released the following statement in response to the United States Trade Representative's (USTR) final action to a Section 301 Investigation that would impose fees on Chinese vessels and new tariffs on cargo-handling equipment (CHE).
AAPA submitted industry comments in opposition to the original proposal and joined a coalition of 316 other trade groups on a letter outlining the far-reaching negative impacts of the proposed fees, which highlighted economic research, commissioned by AAPA and other industries that rely on maritime transportation.
“America’s ports appreciate the Trump Administration’s willingness to incorporate industry’s concerns in their efforts to counter China’s dominance in the maritime space,” stated Cary S. Davis, AAPA President and CEO. “This policy will, however, still drive up the cost of shipping, reduce volume through our nation’s trade gateways, and make goods, especially automobiles, more expensive for everyday American consumers.”
While the final remedy is significantly improved from the original, the new policy will likely severely impact specific cargo segments like automobiles. The USTR remedy includes a fee on foreign-built vehicle carriers of $150 for every car it has capacity to carry. This poses new and unique burdens on many ports specializing in roll-on-roll off trade business. If a typical ro-ro vessel can transport 6,000 cars, the total fee could reach almost $1 million per vessel.
Responding to the potential for an additional 100% tax on cargo handling equipment (CHE), bringing the tariff as high as 270% on ship-to-shore cranes, Davis continued, saying, “the Administration must remember that there are currently no domestic manufacturers of ship-to-shore cranes. Without action from the Administration to create an incentive for their production, there won’t be for several years. High tariffs on ship-to-shore cranes, without affordable alternatives from either domestic or allied sources, function as a crippling tax on port development and seriously threaten our nation’s ability to expand cargo movement.”
AAPA will submit comments to USTR and encourage ports to contact their Congressional delegations opposing new CHE tariffs and instead champion legislation to create a production tax credit for domestically produced CHE, which would be necessary to incentivize reshoring.
About AAPA:
The American Association of Port Authorities (AAPA) is the unified voice of port leaders and maritime industry partners across the Western Hemisphere who serve a vital role in job-creation, international competitiveness, and economic prosperity. Connecting small business owners, retailers, and manufacturers to the global marketplace, AAPA member organizations advocate for national policies and infrastructure investments in support of a resilient global supply chain and a positive impact on the way people live, work, travel, and engage in commerce.
