This photo shows the Port of New Orleans in Louisiana, the US, on October 1, 2024. Photo: Xinhua
The US government's proposed hefty fees on China-linked ship visits to American ports have drawn strong backlash from relevant US industries, with some already reporting negative impacts and others warning of severe consequences amid a public hearing held by the office of the US Trade Representative (USTR) on Monday US time.
"I would like to relay the concerns the port industry has with the proposed actions. A large fee on vessels calling at US ports will raise the price of shipping and will be passed on from ocean carriers to cargo owners, and thus consumers," said Cary Davis, president & CEO of the American Association of Port Authorities, according to a document submitted to the USTR before the Monday hearing, which is posted on the USTR's website.
"Imposing this fee at our ports could also risk diverting cargo to Canadian and Mexican ports, depriving our coastal communities of cargo throughput that creates jobs and funds infrastructure improvements," Davis stated.
Gao Lingyun, an expert at the Chinese Academy of Social Sciences in Beijing, said that the strong backlash from US industries shows that the US government's policy will ultimately result in American businesses and consumers paying higher prices. "The US is essentially lifting a rock only to drop it on its own foot," Gao told the Global Times.
Apart from the shipbuilding and shipping industries, other US industries, especially exporters, also raised concerns and objections.
"We are extremely concerned that if this proposal goes into effect, US soybeans will be effectively shut out from our global export markets," Mike Koehne, an Indiana soybean farmer and director of the American Soybean Association, said in a document submitted to the USTR Office before the Monday hearing.
Koehne noted that the US does not have the domestic flag capacity to handle its export market at the rate proposed by the USTR. "Our industry is reliant upon ocean-going vessels to export our crop to customers around the world in a cost-effective and efficient manner."
"The USTR's proposed remedies targeting China's maritime, logistics and shipbuilding sectors could have severe unintended consequences for the US mining industry, which relies heavily on global shipping networks," Veronika Shime, vice president of International Policy and Sustainability at the National Mining Association, said in a statement submitted to the USTR.
Increased costs, supply chain disruptions, and even the outright inability to import or export critical materials could bring the industry to a standstill - threatening US manufacturing, energy production and national security. "We are already hearing reports of company transportation contracts being canceled, signaling immediate and serious disruptions," said Shime.
"We urge the USTR to consider the ripple effects beyond shipbuilding and engage with stakeholders to develop targeted solutions that do not inadvertently weaken American mining, manufacturing, and energy security," said Shime.
"This action will slam the brakes on oil and gas production as the fees are onerous and make the US immediately uncompetitive," Enterprise Products Partners, a Houston-based energy infrastructure company, stated in a document submitted to the USTR.
The company stated that "every time our people travel internationally to promote US energy exports, they get the same question - can we depend on the US. This action tells the world that they cannot."
The company also quoted Lars Jensen, CEO of Vespucci Maritime, a shipping expert, as saying "if the intention is to drastically increase costs for US importers and make US exports uncompetitive, this proposal is likely to do the job."
Global Times
