Following an unusual one-and-a-half-day comment period, the U.S. Trade Representative (USTR) issued a Federal Register notice suspending all Section 301 actions related to China’s targeting of the maritime, logistics, and shipbuilding sectors for one year, ending November 9, 2026. The suspension puts off fees on maritime transport services outlined in Annex I (covering Chinese-operated or Chinese-owned vessels), Annex II (covering Chinese-built vessels), and Annex III (covering foreign-built vehicle carriers) of the April 23, 2025 notice (as modified by the October 16, 2025 notice), as well as duties on ship-to-shore cranes and certain cargo handling equipment under Annex V.A of the October 16 notice. During the suspension period, no liabilities will accrue for these fees or duties, providing immediate relief to vessel operators and supply chain participants.
This suspension was part of a larger U.S.-China trade and economic agreement announced by the White House on November 1, 2025, which includes China’s commitment to negotiate on the Section 301 issues raised in the investigation. Directed by the President and deemed no longer appropriate under Section 307(a)(1) of the Trade Act, the pause allows time for bilateral talks while enabling the U.S. to advance domestic shipbuilding investments, including $500 billion from Japan and $150 billion from the Republic of Korea for modernizing shipyards and supporting U.S.-flagged vessels. The suspension will avoid increased shipping costs, commercial disruptions, and potential realignment of global trade routes, particularly trans-Pacific lanes. It is expected to lower vessel chartering rates and stabilize freight markets amid ongoing geopolitical tensions.
Significantly, the suspension action does not specify that the scheduled increases on the fees will be reset by the suspension. Thus, if the fees resume next year, the scheduled increases under the original action will have effect. The original actions, detailed in the USTR’s April 23, 2025 notice, proposed phased fees on Chinese-operated or -owned vessels (Annex I: up to $140 per net ton by 2028), Chinese-built vessels (Annex II: up to $33 per net ton or $250 per container by 2028), and foreign-built vehicle carriers (Annex III: $150 per Car Equivalent Unit starting October 14, 2025), assessed per U.S. port rotation up to five times annually. Additional measures included up to 100% duties on Chinese-origin ship-to-shore cranes and cargo handling equipment, plus escalating requirements for U.S. LNG exports on U.S.-built and -flagged vessels reaching 15% by 2047. These were aimed at countering China’s subsidies and dominance in shipbuilding and logistics, with initial fees set at $0 per net ton or equivalent until October 14, 2025. USTR’s notice is available here.
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