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The OCEANAIR Current

MARCH 6, 2025

The Weekly Current

Compliance

The 25% IEEPA (International Emergency Economic Powers Act) tariff officially went into effect this week for imports from Canada and Mexico. Reports indicate that late last night, the Trump administration agreed to a 30-day delay for USMCA-eligible vehicles and parts. While the White House press secretary has confirmed the temporary adjustment, importers are still awaiting official guidance, including the publication of affected HTS codes.

Imports

The Trump administration’s proposal to impose fees on Chinese-built and operated ships calling at U.S. ports has sparked concerns within the container shipping industry. Under the proposal, fees could reach up to $1 million per port entry for Chinese vessel operators and up to $1.5 million per port entry for Chinese-built vessels. The policy could significantly impact ships calling at U.S. ports, particularly major carriers like COSCO Shipping and OOCL.

Industry groups, including the World Shipping Council, warn that the proposed fees could drive up costs for U.S. consumers and exporters while discouraging ship calls at U.S. ports. The National Retail Federation has also raised concerns, arguing that the additional financial burden could negatively impact supply chains and trade.

In response, the Office of the U.S. Trade Representative (USTR) is soliciting public comments on proposed Section 301 actions aimed at countering China’s policies in the maritime, logistics, and shipbuilding sectors. A public hearing is scheduled for March 24, 2025, with requests to appear due by March 10, 2025, and comments accepted through March 24, 2025.

The investigation stems from a petition filed in March 2024 by five national labor unions, alleging that China’s practices harm the U.S. maritime, logistics, and shipbuilding industries. USTR’s findings indicate that China’s policies distort competition, create supply chain dependencies, and undermine U.S. economic security and business opportunities.

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