US Plans 100% Tariffs On Chinese-Made Port Cranes To Tackle Security Risks

The United States is planning to introduce steep tariffs up to 100% on ship-to-shore (STS) cranes and cargo handling equipment that are made in China or built using Chinese parts.

The decision is made to reduce the country’s reliance on Chinese-made maritime infrastructure and tackle growing national security concerns.

This announcement comes alongside a newly finalised port fee targeting ships that are built in China or operated by Chinese companies.

The proposal follows a detailed Section 301 investigation led by the United States Trade Representative (USTR).

The investigation included a two-day public hearing and collected nearly 600 written comments from various industry stakeholders.

It revealed serious vulnerabilities in the U.S. maritime supply chain, mainly due to China’s overwhelming dominance in key components.

According to the USTR report, China currently produces 95% of the world’s shipping containers and controls 86% of the global supply of intermodal chassis.

These figures have raised serious concerns about China’s ability to manipulate the flow of essential maritime equipment and materials, and put U.S. ports and supply chains at risk.

“Ships and shipping are vital to American economic security and the free flow of commerce,” said U.S. Trade Representative Ambassador Greer.

She added that the goal of these actions is to reverse China’s dominance, address threats to the U.S. supply chain, and create stronger demand for ships and equipment built in the United States.

The proposed tariffs would apply to STS cranes that are manufactured or assembled using Chinese components.

They would also affect equipment produced anywhere in the world by companies that are controlled by China.

One of the main companies under scrutiny is Shanghai Zhenhua Heavy Industries (ZPMC), a major supplier of STS cranes to ports around the world, including in the U.S.

ZPMC has close ties to the Chinese Communist Party (CCP), and there are increasing concerns that its equipment could be used for surveillance or other cybersecurity threats at American ports.

This proposal follows an earlier decision by the Biden Administration to place a 25% tariff on STS cranes made in China.

The USTR is seeking public feedback on the proposed tariffs. Written comments can be submitted until May 19, 2025, and a public hearing is scheduled for the same day at the U.S. International Trade Commission in Washington, D.C.

Anyone who wants to speak at the hearing must register by May 8, 2025.

The USTR is asking for specific input on which products should be included, what the tariff rates should be, and how long the implementation period should be, ranging anywhere from 180 days to 24 months.

Reference: USTR

Source: Maritime Shipping News