The White House has confirmed a one-year suspension of U.S. port fees and other measures imposed under the Section 301 investigation targeting China’s dominance in global shipbuilding, logistics, and maritime sectors. The move, effective November 10, 2025, marks a major de-escalation in the trade tensions that have unsettled global shipping markets throughout the year.

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Announced as part of a broader trade accord between President Donald Trump and President Xi Jinping last week in Busan, South Korea, the suspension covers all “responsive actions” tied to the Section 301 probe, while both sides negotiate a longer-term maritime framework.

“The United States will suspend for one year the implementation of the responsive actions taken pursuant to the Section 301 investigation on China’s Targeting the Maritime, Logistics, and Shipbuilding Sectors for Dominance,” the White House said in its fact sheet. “During this time, the U.S. will continue negotiations with China while deepening cooperation with Korea and Japan to revitalize American shipbuilding.”

Reciprocal Steps from China

In exchange, China will roll back its own retaliatory measures, including sanctions on several shipping entities—believed to include units of Korean shipbuilder Hanwha—and suspend counter-fees on U.S.-linked vessels for one year.

The port fees had their origin in a Section 301 petition filed in March 2024 by the United Steelworkers (USW) and a coalition of labor unions. The petition accused Beijing of using state subsidies and non-market practices to dominate global shipbuilding. Following that complaint, the U.S. Trade Representative (USTR) ruled in January 2025 that China’s maritime and shipbuilding policies were “unreasonable” under U.S. trade law.

“Today, the U.S. ranks 19th globally in commercial shipbuilding, producing fewer than five ships a year, while China builds over 1,700,” said Katherine Tai, former USTR under the Biden administration. “China’s dominance in this sector undermines fair competition and remains the biggest obstacle to reviving U.S. shipbuilding.”

Suspension Covers Broad Maritime Actions

The White House said the suspension applies not only to the port fees on China-linked ships—introduced October 14—but also to potential tariffs on Chinese-built cranes and cargo-handling equipment, fees on foreign-built car carriers, and rules tied to LNG shipping incentives.

While the move relieves immediate financial strain on shipping operators, it also raises questions about the future direction of U.S. industrial maritime policy.

Industry Divided on Impact

Labor representatives expressed mixed reactions. Roy Houseman, Legislative Director for the United Steelworkers, called the suspension a “truce with loose ends,” warning that Washington still lacks a coherent plan to rebuild domestic shipyard capacity.

“Fifty-three percent of all global ship orders by tonnage in the first eight months of 2025 went to China,” Houseman said. “That level of concentration is unhealthy. We need policies that genuinely reinvigorate U.S.-based shipbuilding.”

Shipping industry groups, however, broadly welcomed the decision. The International Chamber of Shipping (ICS) described the suspension as “a positive and stabilizing step,” noting that the earlier fee regime had already “posed significant challenges and disruptions” to global trade.

World Shipping Council President Joe Kramek echoed the sentiment:

“Global trade flows best when it flows freely. The suspension of ship fees by both the U.S. and China is a win for exporters, importers, and consumers alike.”

Next Steps: Regulatory Details Still Pending

Despite the White House confirmation, maritime legal experts cautioned that the details still hinge on upcoming regulatory filings.

“The administration’s fact sheet sets the timeline, but the formal regulatory language will define the true scope of the suspension,” said Brian Maloney, partner at Seward & Kissel’s Maritime & Transportation Group. “The USTR’s public comment period for the Section 301 probe closes November 10, so final regulatory action will likely follow shortly after.”

For now, the temporary suspension offers a welcome reprieve for shippers caught between dueling trade measures—but with only a one-year window, industry observers say the truce may simply postpone deeper policy battles over how to rebuild U.S. shipbuilding competitiveness in the face of China’s global maritime dominance.