An Executive Order published April 9, 2025 outlines new proposals aimed at strengthening U.S. trade enforcement and addressing unfair practices by the People’s Republic of China in the maritime, logistics, and shipbuilding sectors. An action plan is due to the President by early November, with various other components requiring reporting in 90 days.
While the majority of the text focuses on resurrecting the US shipbuilding program, increasing the global presence of US flagged vessels, and related financial and educational incentives, key components that may have an impact on trade are:
The initiative to prevent the perceived circumvention of the Harbor Maintenance Fee (HMF) and ensure proper collection of applicable charges on imported goods that dock in Canada and Mexico and subsequently send their cargo into the U.S. through land borders. The Secretary of Homeland Security has been tasked to take all necessary actions, including proposing new legislation, to:
a. Require all foreign-origin cargo arriving by vessel to clear the CBP entry process at a U.S. port of entry for security and collection of all applicable duties, customs, taxes, fees, interest, and other charges; and
b. Ensure any foreign-origin cargo first arriving by vessel to North America clearing the CBP process at an inland location from the country of land transit (Canada or Mexico) is assessed applicable customs, duties, taxes, fees (including the HMF), interest, and other charges plus a 10 percent service fee for additional costs to the CBP, so long as the cargo being shipped into the United States is not substantially transformed from its condition at the time of arrival into the country of land transit.
c. No timeframe is specified for this portion.
In response to China's targeting of the maritime, logistics, and shipbuilding sectors, the USTR, as part of its ongoing Section 301 investigation, has been directed to:
a. Coordinate with the appropriate agencies to collect additional information and take appropriate steps to enforce any resulting restrictions, fees, penalties, or duties.
b. Consider proposing tariffs on:
i. Ship-to-shore cranes manufactured, assembled, or made with components of Chinese origin, or manufactured anywhere in the world by a company owned, controlled, or substantially influenced by Chinese nationals.
ii. Other cargo handling equipment.
The full text of the Executive Order can be found here: Restoring America's Maritime Dominance.
We will continue to monitor these developments and provide updates as further details become available.