US Exempts Caribbean From Costly Port Fees On Chinese-Built Ships

The Caribbean has been exempted from a new U.S. tariff on ships made in China, helping the region avoid huge costs and trade problems.

On April 17, the U.S. Trade Representative (USTR) confirmed that vessels operating in the Caribbean, including those servicing U.S. territories, won’t be affected by the high port fees.

This came after months of lobbying by regional leaders, shipping companies, and private sector groups.

The Caribbean Private Sector Organisation (CPSO), part of the 15-member CARICOM, welcomed the news, calling it a much-needed relief.

They warned earlier that the proposed tariffs would have caused higher prices, shipping delays, and supply issues across the region.

The U.S. had proposed these tariffs under a 2023 investigation to push back against China’s dominance in global shipbuilding.

The fees, ranging from $500,000 to over $1 million per visit, were meant to encourage the use of U.S.-built ships. But this move raised concerns in the Caribbean, where many shipping lines use mid-sized, Chinese-built vessels.

Leaders like Barbados Prime Minister Mia Mottley and Antigua’s Port CEO Darwin Telemaque played important roles in securing the exemption, with direct appeals to U.S. officials, including Secretary of State Marco Rubio and even President Donald Trump.

CPSO Chairman Dr. Patrick Antoine and his team led the technical work behind the campaign. Their research and testimony helped show how damaging the tariffs would have been for small island economies.

The U.S. also accepted key exemptions Caribbean leaders had asked for:

• Short Sea Shipping: Routes under 2,000 nautical miles are now excluded.
• Smaller Ships: Ships under 55,000 DWT and 4,000 TEUs are exempt.
• Special Cargo Vessels: Certain larger ships carrying energy or chemicals (up to 80,000 DWT) are also exempt.

Several other groups, including Tropical Shipping, the Caribbean Shipping Association, Massy, GraceKennedy, and U.S. Congresswoman Stacey Plaskett, were also praised for their roles.

References: Bloomberg, CNW

Source: Maritime Shipping News