The U.S. Trade Representative extended its suspension of Section 301 fees on Chinese-built and Chinese-operated ships for two more months through January 9, 2027, preventing higher freight costs on American grain and soybean exports while trade negotiations with China continue.
- USTR extended the suspension of maritime transport fees and tariffs on Chinese cargo handling equipment from November 10, 2026, through January 9, 2027
- Chinese-owned or operated vessels would face $50 per net ton in fees if tariffs resume, with Chinese-built vessels paying $18 per net ton or $120 per container
- Nearly 50% of the global dry bulk fleet is Chinese-built, making this suspension critical for U.S. agricultural exporters who ship half their soybean crop overseas
- Agricultural groups including the American Soybean Association and U.S. Soybean Export Council urged a permanent suspension, citing increased export transportation costs
- USTR will continue monitoring the situation and decide before January 10, 2027, whether to extend the suspension again or implement further action
The Office of the U.S. Trade Representative (USTR) has suspended its Section 301 fees on Chinese-built and Chinese-operated ships for two more months, keeping a potential new freight cost off U.S. grain and oilseed exports while talks with China continue.
In a notice of modification posted Friday, USTR said the suspension had been set to expire Nov. 10 and now runs through 11:59 p.m. Eastern time on Jan. 9, 2027. The extension took effect Monday. Until then, no party will accrue liability for or be required to pay the maritime transport service fees, or the duties on Chinese ship-to-shore cranes and other cargo handling equipment, according to the notice.
USTR first imposed the actions in April 2025 and changed them in October 2025, following an investigation into China's targeting of the maritime, logistics and shipbuilding sectors. After a Nov. 1, 2025, trade deal between President Donald Trump and Chinese President Xi Jinping, the U.S. suspended the actions for one year beginning Nov. 10, 2025. USTR proposed the two-month extension Oct. 23 and opened it for comment in a Federal Register notice published Oct. 26.
The fee schedule explains why bulk exporters are watching. If the fees come back, Chinese-owned or Chinese-operated vessels would pay $50 per net ton. Chinese-built vessels would pay $18 per net ton or $120 per container. Both rates would rise in steps over three years, according to the Grain Transportation Report from the Agricultural Marketing Service (AMS). Chinese-built bulk vessels would owe nothing if they arrive empty, or in ballast, or have less than 80,000 deadweight tons of capacity.
That exposure is set to grow. China had 134 million deadweight tons of dry bulk vessels on order as of September 2026, or 79% of the world's dry bulk orderbook, according to Drewry Maritime Research data cited by AMS.
USTR said it received about 60 unique comments. Supporters said a further suspension would avoid higher shipping costs and commercial disruptions, and some urged making it permanent. Opponents said the action is needed to create incentives to invest in U.S. shipbuilding and related industries, such as containers. Some comments supported ending the crane tariff suspension and handling those tariffs separately from the vessel fees.
Soybean groups were among the supporters. The American Soybean Association, U.S. Soybean Export Council, Soy Transportation Coalition and U.S. Identity Preserved Alliance filed joint comments Oct. 30. They said half of the U.S. soybean crop is headed for overseas markets, most exported soybeans and soybean meal move by dry bulk carrier, and nearly 50% of the global fleet is Chinese-built. The groups urged a long-term suspension, saying bulk agricultural shipments remain the most exposed.
"Ultimately, levying Section 301 port fees will increase overall export transportation costs," the groups said.
Several questions remain open. USTR said it will keep monitoring the issues and will consider whether to extend the suspension again or take further action before the Jan. 10, 2027, deadline. In the meantime, the U.S. will continue talks with China and work to expand domestic commercial shipbuilding capacity under the White House's Maritime Action Plan, released in February 2026.
