USTR proposes extending pause on China-linked vessel fees to January 2027

The Office of the United States Trade Representative (USTR) is proposing to extend the suspension of Section 301 fees on China-linked vessels until January 9, 2027, according to a Federal Register filing dated October 23, reported by Supply Chain Dive.

The suspension, initially set to end on November 9, 2026, was first paused until November 2025 and is now proposed for further extension to allow continued negotiations between the U.S. and China regarding the policies and practices under investigation.

These fees, ranging from $18 per ton to $120 per container, were introduced last year to target China’s role in logistics, maritime, and shipbuilding sectors, with an aim to encourage domestic shipbuilding by offering exemptions for new U.S.-built vessels.

Several trade groups and shipper associations have urged the USTR to maintain the pause, expressing concerns that imposing or resuming these fees could increase ocean freight market uncertainty amid already elevated transportation costs and shifting carrier capacity.

Public comments on the proposed extension are being accepted until October 30, as the USTR continues to weigh the economic impacts and negotiations with China.