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US-China trade tensions simmer as port fees take effect

October 14, 2025
in Business
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US-China trade tensions simmer as port fees take effect
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New fees on US ships arriving in Chinese ports came into effect on Tuesday, as trade tensions between Washington and Beijing increase.

The charges – which China says aim to “safeguard its shipping industry” from “discriminatory” measures – apply to US-owned, operated, built, or flagged vessels but not Chinese-built ships, state media said.

It comes in retaliation as the US is set to start charging fees on Chinese ships arriving in its ports from 14 October.

Beijing announced the levies last week alongside moves to tighten controls on its rare earth exports. US President Donald Trump responded with a threat of an additional 100% tariff on China.

Also on Tuesday, new US tariffs came into effect on imported timber, kitchen cabinets and upholstered furniture, much of which comes from China.

US Treasury Secretary Scott Bessent said on Monday that Trump and China’s President Xi Jinping are still expected to meet in South Korea in late October as they try to de-escalate trade tensions between the world’s two biggest economies.

“The 100% tariff does not have to happen… The relationship, despite this announcement last week, is good. Lines of communication have reopened, so we’ll see where it goes,” said Bessent.

“China’s position is consistent. If there’s a fight, we’ll fight to the end; if there’s a talk, the door is open,” said a Chinese commerce ministry spokesperson on Tuesday.

“The US cannot demand talks while simultaneously imposing new restrictive measures with threats and intimidation. This is not the right way to engage with China,” they said in a statement.

Chinese state media said the US duties on Chinese ships violated a maritime transport agreement between the two countries.

In retaliation, US-linked ships berthing at Chinese ports are now charged 400 yuan (£42; $56) per net tonne, according to Chinese state media CCTV.

The duties apply to ships operated by US firms, and those in which an American company holds a stake of 25% or more.

The fees will rise each year, reaching 1,120 yuan per tonne in April of 2028, CCTV said.

Large vessels can carry hundreds of thousands of tonnes of cargo.

The latest measures come despite Washington and Beijing agreeing a tariffs truce earlier this year.

In May, the two sides had agreed to drop triple-digit tariffs on each others’ goods. which had raised the prospect of trade halting between them.

This left US tariffs on Chinese goods facing an added 30% levy compared with the start of the year, while US goods entering China face a 10% tariff.

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