Trump’s policies towards China build upon Biden administration’s legislation in a bid to win the trade war

WASHINGTON DC, May 8 (Geopolitics Unplugged) – The Trump administration has proposed slapping new fines upon Chinese-built container ships as fears rise that China could soon completely dominate the ship building sector. These plans are building upon groundwork laid by the Biden administration’s January 2025 USTR report, which accused China of leveraging state subsidies to capture a projected 98% of the global containership market by value. While the US struggled to produce 10 smaller-sized container ships in 2024, China built 1,418 in the same period. The current administration has labelled this a strategic threat, and as a result, have introduced a proposal for the fining of ships oveere 15,000 TEU (twenty-foot equivalent unit), potentially reaching $1.5 million per port call.

These fines would be catastrophic for US shipping. Early estimates for per-container cost range from $600 to $2,500 depending on fleet size and operator margins. Some carriers face up to $12 Billion in fines due to the heavy reliance on Chinese-built vessels.

Smaller, but critical shipping companies like ACL Cargo, which provide the niche but necessary ability to transport oversized cargo like Airbus wings, would see customer costs spike by $2,500 per shipment, rendering their U.S.-Europe routes entirely unprofitable.

The wider repercussions risk disrupting global supply chains, with industry experts warning of a potential return to the freight turmoil seen during the Covid era. According to the World Shipping Council, spot rates could jump by 25%, potentially raising transatlantic shipping costs from $2,000 to $2,500 per forty-foot equivalent unit (FEU). In response to U.S. penalties, many carriers are diverting shipments to Canadian ports like Halifax, a move that may overwhelm these smaller facilities while leaving major U.S. ports such as Jacksonville and Oakland underused. Meanwhile, congestion could worsen at major gateways like Los Angeles/Long Beach, where average container dwell times already reached 7.2 days in Q1 2025, according to Port of LA data, causing the situation to continue spiralling out of control.

The proposal, aimed at resuscitating US ship building, may only cause the economy to slump further into stagnation. It’s also doubtful if it will have any effect even during Trump’s term; some analysts say that it may take longer than ten years to see ship building return to their former levels.

Editor: Seraph

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