Today, the American Association of Port Authorities (AAPA) released the following statement in response to the Oct. 10 publication of new taxes on port development and shipping: "The seaport industry is challenged by yet more taxes on the equipment necessary for supply chain expansion and resilience," said AAPA president and CEO, Cary Davis. "Ports large and small struggle to finance large, modern, world-class equipment like cranes when government policies double the price overnight. The choice is between affordable equipment or lagging behind. AAPA supports the Trump Administration’s efforts to bring critical manufacturing back to America, but tariffs on key equipment will not lead to a manufacturing boom; they will only make shipping goods through U.S. ports more costly.”
The “modifications” and “proposed modifications” announced on Oct. 10 follow the United States Trade Representative’s requests for public comment made in Federal Register notices published on April 23, 2025, and June 12, 2025.
They reflect USTR’s consideration of public comments received in response to these notices, as well as consultations with petitioners and advisory committees.
Significant aspects of the modifications announced on Oct. 10 include:
• 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 Oct. 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% on certain ship-to-shore cranes and cargo handling equipment.
USTR also proposed further modifications to the responsive action taken in April, including:
• 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.
While USTR evaluates public comments on these proposed further modifications, the payment of certain service fees may be deferred through Dec. 10, 2025.
AAPA said these determinations and new proposals amount to taxes on U.S. ports. First, the fee on all foreign-built vehicle carriers calling at U.S. ports was raised to $46 per net ton. This amounts to an exorbitant fee that will make cars more expensive for consumers and make American cars less competitive in the global market. USTR never opened a comment period for new fees on foreign-built vehicle carriers, and this fee is now in effect as of today, according to a statement from AAPA.
Second, USTR finalized a new 100% tariff on Chinese ship-to-shore (STS) cranes. AAPA appreciates the Trump Administration not applying this tariff to cranes ordered prior to the publication of the proposal, allowing a small number of ports to avoid multi-million-dollar tariff payments on contracts that were already executed when the tariff was proposed. However, AAPA remains opposed to the 100% tariff, which will only make cranes delivered from allied nations more expensive.
There is still not a single American producer of STS (ship-to-shore) cranes. AAPA has endorsed the Port Cranes Tax Credit Act of 2025 led by Rep. Mike Ezell, R-MS, which would incentivize domestic production of STS cranes. Without it, a new 100% tariff will likely only serve to delay port modernization.
Finally, according to the AAPA statement, USTR also proposed a new 150% tariff on a broad range of cargo-handling equipment from China, including gantry cranes, reach stackers, terminal tractors, and more. By effectively pricing out these equipment types for U.S. ports, these tariffs mean ports will delay expansion and modernization plans for years. Any price increase in equipment must be budgeted for by reducing expenses elsewhere, whether workforce training or capital investment. High tariffs on allied nations in Europe and Asia, where much of the world’s port equipment is manufactured, mean costs for CHE will continue to rise worldwide.
AAPA supports efforts to bring maritime industry manufacturing back to America. However, these ill-advised trade policy changes will cause America’s ports to slow modernization and fall further behind competitors, when the maritime industry has emerged as a key focus of national and economic security.
“We urge the Trump Administration to reverse course on these tariffs and instead support American businesses through targeted tax credits and funding for port infrastructure,” the AAPA statement said.
