Beijing strikes with port fees on US ships following Trump’s rare earth export and tariff moves.
The United States and China are reigniting their trade war after President Donald Trump announced a sweeping 100% import tariff on Chinese goods effective November 1, 2025. In a swift and calculated response, China imposed new port fees on US-owned, operated, or flagged ships — marking another escalation in the world’s most consequential economic rivalry.
Trump’s 100% Tariff Sparks Global Shock
President Trump’s decision to double tariffs on Chinese imports came amid growing frustration over Beijing’s tightened controls on rare earth exports—critical minerals that power electric vehicles, semiconductors, and defense technologies. About 70% of the world’s rare earth supply comes from China, giving Beijing enormous leverage in global supply chains.
Trump accused China of pursuing “aggressive and unfair trade tactics,” announcing three retaliatory steps: a 100% tariff on Chinese goods starting November 1, export restrictions on all major US software, and a US$50 per ton port fee on Chinese vessels docking in American ports from October 14.
Economic analysts at Wells Fargo and the Federal Reserve Bank of New York estimated that effective import tariffs on China already reached 40%, even before Trump’s latest move. The announcement triggered market volatility, with the S&P 500 plunging 2% as investors fled to safe-haven assets like gold and US Treasuries.
Beijing Strikes Back: Port Fees on US Ships
China’s Ministry of Transport quickly retaliated on October 14, imposing port fees of US$56 (Rp 930,000) per ton on ships linked to the United States — including those owned, operated, built, or registered under the US flag. The measure mirrors Washington’s earlier move and will increase gradually to US$157 by April 2028.
“China’s actions are a direct counter to America’s unilateral maritime fees,” said the ministry in an official statement reported by CNBC International. The new fees also apply to ships with at least 25% US ownership, meaning several public shipping companies listed on American exchanges could be affected.
Maritime consultant Erik Broekhuizen of Poten & Partners said, “The broad definition could ensnare many publicly traded shipping firms.” He warned of double-charging risks as ships could face fees in both US and Chinese ports.
Global Shipping and Energy Markets Feel the Strain
Major players such as Maersk Line Limited, American President Lines (APL), and Zim Integrated Shipping are expected to face significant cost increases. Analysts predict up to 100 vessels from Poseidon’s Seaspan fleet may incur double port charges.
The ripple effect extends to energy transportation. According to shipbroker Fearnleys, nearly 10% of the world’s very large crude carrier (VLCC) fleet and 13% of Suezmax and LR2 tankers will be affected. Energy analytics firm Vortexa added that 43 liquefied petroleum gas (LPG) supertankers—around 10% of the global fleet—are also exposed to new Chinese fees.
“Port fees from both sides are shaking the tanker market,” said Broekhuizen. The cumulative burden on Chinese shipping giant COSCO and its subsidiary OOCL could reach as high as US$2 billion (Rp 33 trillion) by 2026.
Beijing Defends Its Rare Earth Controls
Amid the growing tensions, China’s Ministry of Commerce defended its decision to tighten export controls on rare earth elements, calling it a “legitimate and lawful measure” to safeguard national interests. A spokesperson clarified, “This is not an export ban. Applications meeting the requirements will still be approved.”
Beijing now requires foreign entities to obtain export permits for any product containing over 0.1% Chinese-sourced rare earths or processed using Chinese extraction or recycling technology. Applications tied to military use will be denied outright.
The European Chamber of Commerce in China noted delays in export approvals, warning that “new restrictions add complexity to global rare earth supply chains.”
Rising Tensions Ahead of APEC Summit
Trump’s announcement also cast uncertainty over diplomatic efforts, including a potential meeting with Chinese President Xi Jinping at the upcoming APEC Summit in South Korea. The US president hinted at canceling the engagement and even suggested restricting Boeing aircraft part exports to China—an especially sensitive threat given that Chinese airlines operate more than 1,855 Boeing jets and have 222 on order.
The back-and-forth between Washington and Beijing signals a deepening decoupling across trade, technology, and maritime sectors. Economists warn that the tit-for-tat measures could ripple across global supply chains and raise shipping costs worldwide.
The renewed US-China trade war underscores how quickly global economic fault lines can widen. As tariffs and maritime fees multiply, industries—from technology to energy—are bracing for turbulence. For Southeast Asian economies like Indonesia and Singapore, the standoff offers both challenges and opportunities: disrupted trade routes may drive up import costs, but regional ports and manufacturers could also attract new investments as companies seek alternatives to the US-China corridor.
Sources: Katadata.co.id (2025) , Kompas.com (2025)
Keywords: China Trade War, Donald Trump, US Tariffs, Rare Earth Export, Port Fees
