The White House has announced that the United States will pause actions related to the Section 301 investigation regarding China's dominance in the maritime, logistics, and shipbuilding sectors for one year, starting November 10.
This decision is part of a broader trade agreement between President Donald Trump and Chinese President Xi Jinping that was made last week in Korea. The agreement covers various trade and economic topics, and the suspension regarding the maritime sector marks a major step back from a dispute that has disrupted global shipping in recent months.
According to the White House, “The United States will hold off on one year of responsive actions tied to the Section 301 investigation concerning China's targeting of the maritime, logistics, and shipbuilding sectors.” The U.S. plans to continue discussions with China under Section 301 while working together with South Korea and Japan to revitalize American shipbuilding.
In response, China has agreed to drop its retaliatory measures that were implemented due to the U.S. actions related to this investigation and will lift sanctions on various shipping entities, possibly including those affecting the Korean shipbuilder Hanwha.
The fees initially arose from a Section 301 petition submitted in March 2024 by the United Steelworkers and other labor groups, claiming that China used unfair industrial policies and large state subsidies to gain an edge in global shipbuilding. On January 17, 2025, the Office of the U.S. Trade Representative found that China's maritime policies were considered “unreasonable” under U.S. trade law.
Katherine Tai, the former U.S. Trade Representative, pointed out, “Currently, the U.S. ranks 19th globally in commercial shipbuilding, creating fewer than five ships each year, while China produces over 1,700 annually. Beijing's attempt to dominate these sectors hurts fair competition and is a significant obstacle to the revitalization of U.S. industries.”
Beginning on October 14, Washington started imposing special fees on ships linked to China that docked in American ports. Under this new suspension, China has also promised to halt its countermeasures against the U.S. for a year.
The White House Fact Sheet specifies that the suspension includes all related actions from the Section 301 investigation, such as potential new tariffs on Chinese-made equipment, fees on foreign-built vessel carriers, and regulations tied to LNG shipping and incentives for U.S.-built vessels.
This suspension raises questions about the future of U.S. shipbuilding policy. Roy Houseman, the legislative Director for the United Steelworkers, said the “truce” leaves many unanswered questions about how the U.S. will work to rejuvenate its domestic commercial shipbuilding.
Houseman emphasized, “53% of all global ship orders by tonnage in the first eight months of 2025 are currently going to China. This level of market concentration is unhealthy for an industry that significantly impacts global trade, and shipbuilding unions will continue to advocate for policies that boost U.S.-based commercial shipbuilding.”
Shipping industry groups have welcomed the suspension. The International Chamber of Shipping called it a “positive development,” noting that while they support increasing U.S. shipbuilding capacity, the fees imposed by the USTR, followed by China’s countermeasures, have already created challenges and disruptions for the shipping industry and global trade.
Joe Kramek, President and CEO of the World Shipping Council, stated, “Global trade operates best when it is free, and the suspension of ship fees by both the U.S. and China benefits farmers, exporters, and consumers. Avoiding extra costs helps keep trade competitive and ensures access to important shipping routes.”
However, many questions remain. “While the Administration’s fact sheet clarifies when the fee suspension will start, the official regulatory language will dictate the details of that suspension, which still need to be clarified,” said Brian Maloney, a partner in Seward & Kissel’s Maritime & Transportation Group. “Additionally, there is an ongoing public comment period in the USTR’s Section 301 investigation, which ends on November 10. Therefore, I expect formal regulatory actions to follow from the White House fact sheet around that date.”