On April 17, 2025, the United States Trade Representative (“USTR“) announced new fees and trade restrictions under Section 301 of the Trade Act of 1974. These measures, effective from 14 October 2025, will impact Chinese maritime and shipbuilding sectors and foreign-built vehicle and LNG carriers. As at the time of writing, these measures do not appear to be impacted by any further rulings on tariffs by the U.S. Court of International Trade, including the 28 May 2025 ruling.
Importantly, the measures below are not cumulative; only one can apply per vessel.
Annex I imposes a service fee on vessels operated or owned by Chinese entities, including those from Hong Kong and Macau. The fee will start at $50 per net ton (“NT”) from 14 October 2025 and will increase to $140/NT by 17 April 2028. This fee is assessed per rotation for multiple US port calls, with a maximum of five charges per year.
Annex II introduces a service fee on operators of Chinese-built vessels. This fee is based on net tonnage, starting at $18/NT from 14 October 2025, and rising to $33/NT by 17 April 2028, or based on the number of containers discharged, starting at $120 per container and increasing to $250 per container by 17 April 2028. The applicable fee will be whichever is greater. Exemptions include vessels arriving empty or in ballast, vessels with specific capacities, SPVs and some US owned vessels. The fee is assessed as per Annex I and subject to the same caps.
Annex III targets non US built vehicle carriers with a service fee of $150 per Car Equivalent Unit (“CEU“) of capacity from 14 October 2025. Operators can suspend this fee for maximum of three years if they order and take delivery of a US built vessel.
Annex IV introduces an export preference rule rather than a fee for LNG exports. From 17 April 2028, 1% of LNG exports must be on US flagged and operated vessels, with this percentage increasing gradually to 15% by 2047. From 17 April 2029, the vessels will also need to be US built. The fee can be suspended for up to three years, as per Annex III.
The above measures have significant and wide-ranging implications. Charterparties and contracts of affreightment must be carefully considered to assess whether tax liability apportionment could affect potential indemnity or damage claims arising from fees incurred under the Annexes. Additionally, individual contractual clauses and time bars should be examined to evaluate legal risk. Finally, Know Your Customer (“KYC“) checks will be essential to manage liability (i.e. whether or not a vessel is Chinese owned or operated, or built in China).
For a detailed analysis and full insights into the USTR measures and possible contractual implications, please see HFW’S full briefing here: How USTR Measures Affect The Global Shipping Market – HFW
