The high-seas trade war between US and China becomes a double-edged sword

The escalating trade conflict between US and China has now reached the maritime sector, with both sides facing serious drawbacks including chaos in shipping, cost burden as well as operational bottlenecks. Apparently, this maritime battlefield has turned into a double-edged sword — each side’s attempt to weaken the other has, for now, undermined its own efficiency and cost structure.

China’s levies cripple the shipping flow it depends on for crude supply, creating a fee disadvantage that feeds back into its own refining and import costs. The US tariffs inflate equipment prices for its own ports, stalling modernization and deepening dependence on foreign suppliers.

AAPA: “No US manufacturer of STS cranes”

US port operators raised sharp criticism over the recent decision. The American Association of Port Authorities (AAPA) warned that the new US tariffs on Chinese-made cranes and cargo-handling equipment could backfire, slowing modernization efforts and inflating costs for domestic ports. The levies include a 100% tariff on ship-to-shore cranes starting November 9 and a 150% tax on Chinese cargo-handling units to follow.

AAPA said the measures, aimed at curbing China’s dominance in maritime manufacturing, could cost US ports $6.7 billion and delay infrastructure upgrades. “There is still not a single American producer of STS cranes,” the association stressed, noting that the duties would only increase reliance on foreign suppliers now at double or triple cost. Representing 81 US ports, AAPA urged Washington to replace tariffs with tax credits and direct funding to strengthen port infrastructure.

AAPA argues the tariffs hurt American ports more than China, and measures meant to strengthen maritime security risk undermining the very infrastructure that sustains it.

China’s response deepens disruption in oil and shipping trades

Beijing’s retaliatory port fees have sent shockwaves through regional shipping markets, particularly affecting crude and product tankers bound for China. New fees add $6 million+ per voyage to tankers bound for China — a massive burden on shippers, potentially affecting one-sixth of the global VLCC (Very-large crude carrier) fleet.

Shipowners are reportedly revising ownership structures to minimize US exposure, while traders scramble to secure compliant vessels and updated documentation. The resulting uncertainty has delayed cargo discharges and congestion at major Chinese ports, and prompted several companies to suspend voyages to China and Hong Kong altogether.

Freight rates surge as shipping market and uncertainty mounts

The retaliatory measures have driven a surge in freight costs. According to the Baltic Exchange, very-large crude carrier (VLCC) chartering rates from the Middle East to China jumped 49% after Beijing’s announcement. Industry observers warn that tit-for-tat tariffs risk fragmenting global shipping markets and adding strain to oil and commodity trade flows.