The United States and China have agreed to suspend retaliatory port fees on each other’s vessels for one year, offering temporary relief to global shipping lines caught in escalating trade tensions. The move marks a pause in a key element of the Trump administration’s effort to challenge China’s dominance in global shipbuilding.

Read also: Washington Halts Port Fees in U.S.–China Maritime Truce, Easing Pressure on Global Shipping

The suspension forms part of a broader trade truce between the two largest economies. President Donald Trump announced on Thursday that he reached an agreement with Chinese President Xi Jinping to roll back some tariffs on Chinese goods in exchange for Beijing’s pledges to curb illicit fentanyl exports, resume purchases of U.S. soybeans, and maintain rare earth supplies. The meeting in Busan, South Korea—Trump and Xi’s first since 2019—capped the U.S. president’s Asia tour, which also included trade announcements with South Korea, Japan, and Southeast Asian partners.

Washington introduced special port fees on China-linked ships on October 14 following a year-long investigation by the Office of the U.S. Trade Representative (USTR) into China’s state-backed shipbuilding sector. The Biden administration launched the probe in 2024, and Trump has since made it a central feature of his broader “America First” maritime policy. According to China’s Ministry of Commerce, both sides will suspend their respective port fees for one year.

“Following the U.S. suspension, China will also suspend its countermeasures against the U.S. for one year,” the ministry said.

U.S. Trade Representative Jamieson Greer confirmed that the administration’s priority remains strengthening America’s shipbuilding base. “We’re trying to rebuild shipbuilding,” Greer told reporters aboard Air Force One when asked about the agreement.

Shipping companies have welcomed the pause after weeks of disruption. The tit-for-tat measures had upended global trade routes, increased freight costs, and forced shipping lines to reconfigure their fleets. Industry leaders called the suspension a positive step toward stability.

“The reports of the U.S. agreement to suspend Section 301 port fees on China’s maritime, logistics, and shipbuilding industries—and the reciprocal suspension by China—are a welcome and positive development,” said the International Chamber of Shipping (ICS).

World Shipping Council President Joe Kramek added: “Global trade flows best when it flows freely. A suspension of ship fees by the United States and China is a win for farmers, exporters, and consumers.”

However, U.S. labor unions remain skeptical. Roy Houseman, Legislative Director for the United Steelworkers, warned that the pause leaves key questions unresolved about the future of U.S. shipbuilding. “This truce leaves unanswered how the U.S. plans to rebuild its domestic commercial shipbuilding base,” he said. “Over half of all global ship orders by tonnage this year have gone to China. That level of concentration is unhealthy for global trade.”

The USTR port fees were part of a broader maritime policy framework including the “Restoring America’s Maritime Dominance” executive order and the proposed SHIPS for America Act. Together, these measures form the most sweeping U.S. maritime reform effort since 1970.

The policy originated from a 2024 petition by the United Steelworkers and allied labor groups that accused China of using subsidies and industrial policy to dominate global shipbuilding. The USTR’s January 2025 report found those practices “unreasonable” under Section 301 trade law, paving the way for the port fee program introduced in April.

The one-year suspension, while easing tensions, leaves uncertainty over how both nations will proceed once it expires. Maritime law expert Brian Maloney of Seward & Kissel said questions remain about the scope of the suspension and whether it will include retroactive relief for fees already collected.

For now, the truce has given the global shipping industry room to breathe—even as Washington continues its long-term effort to rebuild America’s maritime and industrial power.