Earlier this week, the Office of the United States Trade Representative (USTR) said it has suspended its Section 301 Investigation of China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance.
The Office of the USTR said that this suspension will be for one year and went into effect at 12:01 AM ET on November 10.
“The suspension follows the historic trade and economic deal reached between President Trump and President Xi Jinping of China announced by the White House on November 1, 2025,” it said. “In light of this deal, and pursuant to the direction of the President, the United States Trade Representative is suspending for one year, beginning on November 10, 2025, the responsive actions taken in this investigation. The United States will negotiate with China pursuant to Section 301 regarding the issues raised in this investigation. While taking these actions, the United States will continue its domestic efforts and its discussions with key allies and partners on revitalizing American shipbuilding.”
Prior to this announcement this development, the USTR said on October 14 that it had outlined actions in regards to announced modifications of certain aspects of the responsive action to modify American shipbuilding from April.
On April 17, a statement issued by the USTR office highlighted the main components of this effort including:
- changing the basis for calculating service fees on vessel operators of foreign-built vehicle carriers and setting the fee at $46 per net ton, as of October 14, 2025;
- eliminating, retroactive to April 17, 2025, a provision permitting the suspension of liquid natural gas (LNG) export licenses if certain restrictions on the use of foreign-built vessels are not met; and
- imposing tariffs of 100 percent on certain ship-to-shore cranes and cargo handling equipment
The USTR added that it was also proposing other further modifications from its requests for public comment made in Federal Register notices in April and June, which include: adding a carve-out from fees for certain ethane and liquid petroleum gas (LPG) carriers under long-term charter; and imposing additional tariffs of up to 150% on certain cargo handling equipment (e.g., rubber tire gantry cranes) and components of such equipment.
Feedback regarding the suspension of the Section 301 shipbuilding investigation was mixed.
The American Association of Port Authorities (AAPA) said that the American port industry is relieved to see these fees and tariffs suspended for one year.
“This pause will allow the industry to continue delivering the cargo and passengers that power the American economy,” it said. “We urge the Trump Administration to continue negotiations to ensure that these policies are not reimposed in one year.”
On the other end, a Bloomberg report stated that various labor unions, in a letter to Jamieson Greer, the U.S. Trade Representative, said they were disappointed in regards to the suspension, adding it would have negative consequences in the nation’s attempt to restore the US’s maritime sector.
“By suspending 301 remedies for one year, the US government is introducing uncertainty at the very moment when confidence and long-term planning are most essential,” the letter said. “Suspending implementation of the responsive actions under the Section 301 investigation will continue to give China a free pass.”
The letter was signed by the United Steelworkers, International Association of Machinists, International Brotherhood of Electrical Workers and International Brotherhood
of Boilermakers.
