US Considers 100% Tariffs on Chinese-Made Port Cranes to Address Security Concerns
The United States is gearing up to impose significant tariffs of up to 100% on ship-to-shore (STS) cranes and cargo handling equipment that are manufactured in China or contain Chinese components. The primary objective behind this move is to reduce the nation’s dependence on Chinese-made maritime infrastructure and combat escalating national security threats.
This decision has been made in conjunction with a newly established port fee that targets vessels constructed in China or operated by Chinese entities. The proposed tariffs have emerged following an extensive Section 301 investigation spearheaded by the United States Trade Representative (USTR).
The investigation, which included a two-day public hearing and gathered close to 600 written submissions from diverse industry stakeholders, uncovered critical vulnerabilities in the U.S. maritime supply chain, largely attributable to China’s dominant position in crucial components.
According to the USTR report, China currently commands 95% of the global shipping container production and controls 86% of the worldwide supply of intermodal chassis. These statistics have raised serious apprehensions regarding China’s capacity to manipulate the movement of essential maritime equipment and materials, thereby jeopardizing U.S. ports and supply chains.
U.S. Trade Representative Ambassador Greer emphasized the significance of ships and shipping in maintaining American economic security and facilitating the free flow of commerce. She underscored that the aim of these measures is to counterbalance China’s supremacy, mitigate threats to the U.S. supply chain, and foster greater demand for ships and equipment manufactured in the United States.
The proposed tariffs would encompass STS cranes that are either produced or assembled utilizing Chinese components. Furthermore, they would impact equipment manufactured globally by firms under Chinese control. Notably, Shanghai Zhenhua Heavy Industries (ZPMC), a prominent supplier of STS cranes to ports worldwide, including those in the U.S., is under scrutiny due to its close affiliations with the Chinese Communist Party (CCP).
There are mounting concerns that ZPMC’s equipment could be exploited for surveillance or other cybersecurity threats at American ports. This latest proposal follows the Biden Administration’s earlier decision to levy a 25% tariff on STS cranes originating from China.
The USTR is soliciting public input on the proposed tariffs, with written comments accepted until May 19, 2025. A public hearing is scheduled for the same day at the U.S. International Trade Commission in Washington, D.C., with registration for speakers closing on May 8, 2025.
Stakeholders are encouraged to provide specific feedback on the inclusion of products, recommended tariff rates, and the duration of the implementation period, which could range from 180 days to 24 months.
Reference: USTR