US and China pause port levies for one year after Trump-Xi meeting in Busan
- US and China agree to suspend port fees for one year following a meeting between the countries’ leaders
- Move signals temporary easing of trade tensions, though details on timing and possible refunds remain unclear
- Other agreements include tariff cuts and a pause on new export-control measures on both sides
A moment of restraint in US-China trade tensions saw both sides freeze port levies and trim tariffs following a leaders’ summit in Busan
WASHINGTON and Beijing have agreed to put on hold the port levies imposed on each other, senior officials from both sides have confirmed.
“The US will suspend for one year the implementation of its Section 301 measures targeting China’s maritime, logistics, and shipbuilding industries,” a spokesperson for China’s Ministry of Commerce told reporters.
“In response, China will also pause its countermeasures against the US for one year,” the spokesperson added.
US trade envoy Jamieson Greer earlier today also hinted at plans to delay the investigation into China’s shipbuilding sector.
The announcements came after a face-to-face meeting between US President Donald Trump and his Chinese counterpart Xi Jinping earlier today in Busan, South Korea.
The meeting was seen as a capstone to the broader understanding reached by their trade teams in Kuala Lumpur a few days earlier.
“China is willing to work with the US to safeguard and implement the important consensus reached by the two heads of state,” the Commerce Ministry said in a statement.
The suspension unveiled today follows a period of heightened tensions.
In April, the US Trade Representative announced its formal port fee rules on Chinese-linked vessels, citing alleged unfair competition in logistics and maritime services. The measures — kept largely intact — took effect on October 14.
China’s Ministry of Transport retaliated by implementing matching port fees on US vessels on the same day, having published the new regulations only days earlier.
The twin levies were expected to ripple through the shipping industry, affecting asset prices, newbuilding investments, logistics costs, and route planning.
Cosco Shipping, China’s largest state-owned shipping company, was projected to sustain a financial hit exceeding $1bn within the first year of enforcement.
Some from the industry also viewed the fallout from the port fees as a potential driver of higher freight rates.
“The removal of the twin disruptions of punitive tariffs against Chinese container imports and uncertainty over the port tariffs could work against carriers efforts to raise rates as the market enters the traditional slack season in November with carriers still slow in removing surplus capacity,” Linerlytica said in a report earlier this week.
It remains unclear when the two governments will formally halt the collection of the fees or whether payments that have already been made will be refunded.
According to the Ministry of Commerce, other consensus reached includes the US halving tariffs imposed on China over fentanyl issues to 10%, while China will adjust its countermeasures accordingly.
The US will also suspend for one year the “50% Rule” adopted by the Bureau of Industry and Security on September 29 to expand its export controls, while China will hold off on enforcement of related export restrictions on rare earths it introduced on October 9.
