What the New U.S. Vessel Policy Means - and Why AAFA Says It Could Hurt More Than Help
Why This Matters Now
On April 17, 2025, the Office of the U.S. Trade Representative (USTR) announced a major policy shift aimed at curbing China’s influence in shipbuilding and restoring U.S. capacity in the maritime sector. Backed by a Section 301 investigation, this move introduces new fees and proposed tariffs with long-term implications for trade, logistics, and port operations.
The changes are designed to protect American shipbuilders and encourage domestic investment. But not everyone is on board. The American Apparel & Footwear Association (AAFA) is pushing back, warning that the plan could raise costs and disrupt supply chains.
Here’s what you need to know.
The Policy: A Two-Phase Plan to Shift the Playing Field
The USTR’s response to China’s maritime dominance comes in two waves. The goal is to gradually move away from dependence on Chinese-built ships and infrastructure—without creating an immediate supply chain crisis.
Phase 1 – Starts After 180 Days (Mid-October 2025)
- Fees on Chinese Vessel Owners & Operators
- Based on net tonnage per U.S. voyage
- Starts at $50/NT, increasing by $30/year for the next three years
- Fees on Operators of Chinese-Built Ships
- Starts at $18/NT or $120 per container
- Rises annually over the same period
- Fees on Foreign-Built Car Carrier Vessels
- Based on ship capacity, starting at $150 per Car Equivalent Unit (CEU)
🔎 Important Notes:
- Only one fee per voyage applies (they’re not stacked)
- Capped at five U.S. voyages per vessel per year
- A company that orders a U.S.-built ship can pause equivalent fees for up to 3 years
Phase 2 – LNG Vessel Rules (Start in 3 Years)
- Introduces gradual restrictions on transporting liquefied natural gas (LNG) using foreign vessels
- These rules will ramp up over 22 years
This phase aims to encourage investment in U.S.-built LNG carriers, allowing ample time for adaptation.
Proposed Tariffs on Port Equipment
Alongside the vessel policy, the USTR is seeking public comments on proposed tariffs for ship-to-shore cranes and other cargo handling equipment, most of which are currently made in China.
🗓️ Deadline for public comments: May 8, 2025
The goal here is to boost U.S. manufacturing of critical port infrastructure and reduce reliance on imported hardware with embedded software and cybersecurity risks.
👟 AAFA’s Response: Costly and Counterproductive?
The American Apparel & Footwear Association (AAFA) has voiced strong opposition to the Section 301 measures. While supportive of strengthening U.S. maritime industries, the AAFA argues that the approach may have serious side effects.
Their Main Concerns:
- Rising Costs
- Tariffs and fees will raise ocean shipping costs
- According to their analysis:
- U.S. exports could drop 11.56%
- National GDP could fall by 0.23%
- Limited U.S. Shipbuilding Capacity
- U.S.-built vessels can cost up to five times more than foreign ships
- Domestic shipyards can’t meet near-term demand, making penalties feel punitive
- Potential Port Disruptions
- Shippers may reduce calls to smaller ports to limit fee exposure
- This could hurt jobs and traffic at regional ports
- The Call for Smarter Alternatives
- Instead of penalties, AAFA urges:
- Direct incentives for U.S. shipbuilding
- Long-term industrial planning
- More realistic timelines for fleet transition
- Instead of penalties, AAFA urges:
Their answer:
Don’t put the burden of trade correction on shippers, exporters, and consumers.
What This Means for Trade & Logistics
No matter where you stand, these changes will ripple through the industry.
-> Shippers need to evaluate vessel origin and exposure
-> Freight forwarders must understand which vessels will trigger new fees
-> Port authorities may face shifting traffic patterns
-> Exporters should reassess freight cost structures now
For many, this policy may spark fleet strategy reviews, contract revisions, and infrastructure recalculations.
Competing Visions for the Future
At the heart of this debate is a question of balance. The USTR wants to rebuild domestic strength and correct years of uneven competition. The AAFA warns that doing so through cost penalties could harm U.S. businesses more than it helps.
The decisions made in 2025 will help define how the U.S. approaches trade security, global freight, and infrastructure independence over the next two decades.
Resources & Next Steps
At BlueCargo, every single team member is following closely the changes and all updates related to Tariffs and Supply Chain policies.
If you ever need to speak to someone about your freight costs and need an expert guidance on your strategy, you can always reach out at:
contact@bluecago.io
We're here for that. We're here to help.
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