Last ditch to stop “devastating,” US Shipping fee

By: Staff Writer

March 25, 2025

The Office of the United States Trade Representative is holding public hearings between March 24 and March 26, 2025, regarding proposed actions in the Section 301 investigation on China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance.

Caribbean leaders in politics and business made representation to the USTR hearings on Monday to plead for a change in policy from the Trump administration on their treatment of Chinese shipping containers.

There were nearly 500 comments, letters and documents were posted on USTR’s website about the proposal — the overwhelming majority of which asked for a rethink of the policy.

President of the Caribbean Community (CARICOM) Private Sector Organization (CPSO) Dr. Patrick Antoine, in his request to appear before the USTR, told the US trade body the imposition of these fees could be “devastating” for CARICOM countries, given that they would drive the cost of goods being moved out of US ports into the Caribbean to “astronomical” levels.

“Indeed, the social and economic ramifications of any such measures by the United States is unthinkable,” Antoine said.

He added: “The CPSO also recognizes the immediate jeopardy which any measure as may be under consideration by the USTR, will hold for CARICOM member states, such as Antigua and Barbuda, Dominica, Grenada, St. Lucia, St. Vincent and the Grenadines, and Suriname, among others, where well over 50 percent of the ships plying these routes are Chinese constructed.

“If afforded the opportunity to give testimony at the hearing, the CARICOM Private Sector Organization will present evidence on the significant economic impact of the proposed measure, which will also bring damage to US firms with operations in the Caribbean.”

The USTR has alleged that: “top-down industrial planning and targeting is a critical feature of China’s state led, non-market economic system. China organizes the development of its economy at a high level through broad national-level five-year economic and social development plans.

It then employs industry-specific plans that typically align chronologically with the national five-year plans. These plans often contain detailed quantitative and qualitative targets, including for production, domestic content, and domestic and international market shares, and outline the non-market policies and practices China should use to achieve these targets. China’s plans reveal its targeting of the maritime, logistics, and shipbuilding sectors for dominance.”

Top shipping companies, ports and manufacturers of goods in the United States told the USTR the plan would bring economic hardship on US consumers and consumers of goods moved through US ports, and would not stop Chinese dominance in the ship building sector in the short term.

Caribbean Building Supplies Incorporated’s representative Ken Voss insisted that if this fee is imposed on shipping companies, Caribbean exporters would be put out of business.

“Caribbean Building Supplies Inc. was established in 1988 to export US made goods to projects in the Caribbean,” Voss told the USTR.

“Apparently the shipping line primarily used is Tropical Shipping whose vessels are all built in China.

“This proposed action is ridiculous and will put all Caribbean exporters out of business along with our customers in the islands who rely on US building materials to carry on their business. Bad idea! Very bad!”

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