US and China's trade war escalates with tit-for-tat port fees
What's the story
The United States and China have begun imposing new port fees on each other's ships from today. The move is seen as a major escalation in the ongoing trade tensions between the two economic giants. The US Department of Transportation's Maritime Administration has announced that all vessels arriving at US ports from China will now be subject to new port fees.
Retaliation
China exempts its own ships from new charges
In response to the US move, China has announced its own set of port fees. The Chinese government said these levies are aimed at protecting its shipping industry from "discriminatory" practices. However, unlike the US, China has exempted its own ships from these new charges. The fees will apply to American-owned, operated, built and flagged vessels but not those built in China.
Tariff escalation
US imposes new tariffs on imported timber, furniture
Along with the port fees, the US has also imposed new tariffs on imported timber, kitchen cabinets, and upholstered furniture. Most of these goods are from China. The move is part of broader trade measures by President Donald Trump's administration.
Diplomatic efforts
Trump-Xi meeting in South Korea still on
Despite the escalating trade war, US Treasury Secretary Scott Bessent has confirmed that President Trump and China's President Xi Jinping are still scheduled to meet in South Korea later this month. The meeting is seen as an attempt to de-escalate the ongoing trade tensions. "The 100% tariff does not have to happen... The relationship, despite this announcement last week, is good," Bessent said yesterday.
Trade response
'US can't demand talks while imposing threats'
A spokesperson for China's commerce ministry said, "China's position is consistent. If there's a fight, we'll fight to the end; if there's a talk, the door is open." The official criticized the US for imposing new restrictive measures while calling for talks. They added, "The US cannot demand talks while simultaneously imposing new restrictive measures with threats and intimidation. This is not the right way to engage with China."
Fee details
US-linked ships docking at Chinese ports to be charged
Chinese state media CCTV reported that US-linked ships docking at Chinese ports will now be charged CNY 400 per net ton. The fees are similar to those imposed by Washington and will also apply to vessels operated by US companies or those with a 25% or more stake held by an American firm. The charges will increase annually, reaching CNY 1,120 per ton by April 2028.