More ships under the US flag, higher tariffs on repair services in shipbuilding: The new protectionism under Donald Trump is likely to hit shipyards directly.
Shortly before Christmas, a bill drafted under the leadership of Senator Mark Kelly was submitted to the US Congress, which provides for a significant increase in the cost of shipyard stays of US-flagged ships at foreign shipyards.
The “Ships for America Act” provides for a customs surcharge of 200% to be levied if a “critical country” is involved. China is mentioned by name. In “allied” countries, which is likely to include Germany, it is 50%.
The bill is not even backed by US President-elect Donald Trump or his advisors, but by a cross-party working group. According to experts, however, it is likely to fall on fertile ground in the new administration. Measures to curb China’s dominance in shipping and shipbuilding had already been taken or considered under predecessor Joe Biden.
In return, the new “Act” provides for a strengthening of China’s own fleet and domestic shipyards – with the expected customs revenue, among other things. There is also talk of making port calls in the USA by ships built in China considerably more expensive. According to the proposal, this money should also flow into a fund to finance the domestic maritime industry.
Instead, transportation on behalf of the US government would, in future, be carried out exclusively (100%) on US-flagged ships. Previously, a quota of 50% was applied.
Most recently, the US also classified several large state-owned companies, such as the state shipping company Cosco Shipping and the shipyard giants China State Shipbuilding (CSSC) and China Shipbuilding Trading Co., as “military-related”. Although this does not lead to immediate sanctions, it does mean that US companies are no longer required to do business with these companies.
