U.S. Section 301 Measures Target China’s Shipping and Shipbuilding Sector to Counter China Domination

The Congressional Research Service (CRS) report examines the U.S. use of Section 301 of the Trade Act of 1974 to address China’s policies and practices in the global maritime, logistics and shipbuilding sectors. USTR found that China’s state support, subsidies, industrial policies and market practices have strengthened its dominance and disadvantaged U.S. industries.

In 2025, the U.S. imposed 100% tariffs on Chinese ship-to-shore cranes and chassis and tariffs of up to 150% on Chinese port-handling equipment, along with fees on certain vessels entering U.S. ports. Implementation of the remedies has been delayed until November 10, 2026.

China has become the dominant global shipbuilding power. Its share of global shipbuilding tonnage increased to 54.6% in 2024, while Chinese shipbuilders accounted for about 71% of global ship orders by gross tonnage in 2025. China also produces about 95% of shipping containers, 86% of intermodal chassis and more than 70% of ship-to-shore cranes.

The report notes that U.S. tariffs and port fees alone are unlikely to close the gap with China. Congress is considering additional measures, including support for U.S. shipbuilding and key inputs such as steel, restrictions on Chinese shipping equipment and greater cooperation with U.S. allies.

[Report]