US fees on China-linked ships threaten Australia trade

Australia's shipping industry is worried about a new proposal from the US government. The plan may impose high fees on ships linked to China, which could harm trade and lead to job losses. The US administration, under President Trump, is considering port fees as high as $1.5 million on ships built or operated by Chinese companies. This plan aims to limit China's influence in global shipbuilding and enhance US shipbuilding. The proposal follows efforts started during the Biden administration and includes tax incentives for bringing shipbuilding back to the US. Shipping Australia, the main industry group, says these fees could make it hard for Australian exporters to ship goods to the US. This is especially concerning for Australian meat exporters, as they rely on specific ships with refrigeration needs. Higher shipping costs might push Australian companies to look for customers in other markets, reducing consumer choices in the US. The group warns that such high fees could lead to business failures and job losses, disrupting global supply chains. Australian beef exports to the US are significant, worth over $4 billion annually, and Australia is also a key supplier of sheep and goat meat. In addition, American farmers are pushing for tariffs on Australia, claiming unfair trade practices. Recent reports indicate that ship owners are already hesitant to provide quotes for future US coal exports due to these new potential fees. China dominates the global shipbuilding industry, accounting for more than half of the commercial production worldwide. A recent study shows that China's biggest shipyards produce more tonnage than the entire US shipbuilding industry since World War II. Experts believe that regardless of the US government's final decision, Australian exporters will face significant additional costs.