According to a July 9 report by The Wall Street Journal, industry experts warn that 80% of the gantry cranes at U.S. ports are manufactured by Chinese companies. If new tariffs are implemented, the cost of upgrading critical port equipment could surge by tens of millions of dollars, while rebuilding domestic production capacity would take at least a decade, potentially triggering a supply chain crisis in the short term.
Currently, Chinese firms produce 80% of the gantry cranes used in U.S. ports. Shipping industry data shows that China accounts for over 70% of global crane production, with its equipment favored for stable supply and low prices. A Chinese-made crane averages $15 million, several million dollars cheaper than European or American alternatives.
Karl Bentzel, president of the American Association of Port Authorities, revealed that multiple appeals have been made to the White House, emphasizing that the new tariffs would “punish ports that have already placed orders.” However, the administration insists on “using high tariffs to force alternative procurement,” creating a sharp divide over transition periods.
The proposed tariffs would stack on top of the existing 25% rate from the Biden era, delivering a double blow. Port of Houston CEO Charlie Jenkins stated bluntly that the port needs to purchase 22 cranes over the next six years, and if tariffs take effect, it could face an additional $100 million in costs.
More critically, manufacturers outside China generally lack sufficient production capacity, while rebuilding domestic U.S. supply chains would take a decade—far too slow to address immediate needs.
Port operators have proposed a compromise: exempting equipment ordered before the end of 2024 from tariffs and allowing a three-year transition period to ramp up domestic or allied production before enforcing the new policy.
Notably, this tariff plan mirrors the Trump administration’s broader trade restrictions on China. The U.S. Trade Representative (USTR) previously announced additional fees on Chinese-made ships starting in October and plans to impose tariffs on foreign auto carriers—measures already facing industry pushback.
The U.S. Chamber of Commerce warned that auto carrier tariffs could add $300 per vehicle, destabilizing supply chains.
Additionally, China has long been the top source of U.S. apparel imports. However, after Trump raised tariffs on Chinese goods to 145% in April, many U.S. retailers reduced orders from Chinese factories.
Data from the U.S. International Trade Commission (USITC) shows that U.S. apparel imports from China fell to $556 million in May, the lowest monthly figure in 22 years, highlighting the impact of high tariffs.
Source: China Times
