The American Apparel & Footwear Association (AAFA) has expressed its concerns over the Office of the US Trade Representative's (USTR) decision to introduce substantial new charges on vessels arriving at US ports from China.

The move is a response to findings from a year-long Section 301 investigation into China’s conduct within the maritime, logistics, and shipbuilding industries.

Under Section 301 of the Trade Act, USTR has the power to respond to foreign practices that unfairly burden or discriminate against US commerce.

USTR’s probe involved a two-day public hearing, consultation with government agency experts and USTR cleared advisors as well as taking comments from 600 members of the public.

The latest measures include a tiered fee system aimed at Chinese shipping operators, vessel owners, and vessels constructed in China. Furthermore, the USTR is considering additional duties of 20% to 100% on essential transportation equipment such as containers, chassis, and ship-to-shore cranes.

These fees and tariffs are expected to diminish US trade, leading to losses for American companies and increased expenses for US consumers.

USTR ambassador Jamieson Greer said: “Ships and shipping are vital to American economic security and the free flow of commerce.

“The Trump administration’s actions will begin to reverse Chinese dominance, address threats to the US supply chain, and send a demand signal for US-built ships.”

AAFA had already voiced its opposition to these measures during a hearing with the USTR on 24 March 2025 and submitted written objections against the proposed fees.

The association also conducted a study which concluded that these fees would negatively affect US farmers, workers, and the overall economy.

According to the study, these measures could cause a significant 11.56% drop in US exports and a 0.23% contraction in the nation’s GDP.

AAFA senior vice president for policy Nate Herman expressed significant concern regarding the impact of recently implemented port charges and shipping regulations. He emphasised the potential for severe repercussions on US employees, buyers, and exporters.

“With fees as high as $1.5m per port call, these measures are driving up shipping costs, shrinking GDP, and reducing US exports. When ocean carriers raise rates, American families will pay the price through higher costs and growing product shortages, at a time when they can least afford it. Smaller regional ports will see fewer vessel calls, putting local jobs at risk and disrupting the flow of US goods,” Herman said.

He added: “We fully support strengthening the US maritime industry, but penalising shippers for not using American-flagged or built vessels, when they cost up to five times more and remain in limited supply, is counterproductive.”

Herman also said it was “telling” that the administration made the announcement after markets closed last week and would not open again until Monday.

He explained this “masks a decision that is bad for the economy – bad for American farmers, bad for American manufacturers, bad for American businesses, and bad for hardworking American families”.

By Just Style