Recently, the American Association of Port Authorities (AAPA) issued a formal response to the proposed amendments on port equipment fees put forward by the Office of the United States Trade Representative (USTR) last week. The association clearly stated that the new tariff policy will not only delay the modernization and expansion of US ports but will also be ineffective in achieving the goal of reshoring equipment manufacturing to the United States.
As an industry organization representing public port authorities in the United States, AAPA has opposed the proposed fees on cranes manufactured in China for several years. AAPA explicitly supports the revival of domestic US manufacturing but simultaneously emphasizes that tariff policies must be linked to incentives for restarting domestic manufacturing.
The association pointed out that, for the time being, US ports have almost no alternative options to Chinese manufacturers for crane procurement. Cary Davis, the CEO of the port association, stated: “We still oppose the 100% tariff, which will only make cranes from allied countries more expensive. Currently, there is still no US manufacturer producing container cranes.”
AAPA also noted that the Trump administration made a minor concession regarding the tariff measures on Chinese-made container cranes. They had argued that the tariffs should not be applied retroactively to equipment for which orders had already been placed and expressed gratitude that the Trump administration did not apply the tariffs to cranes ordered before the date the “USTR issued its Section 301 findings on China’s shipbuilding and maritime industries.” According to the rules, the 100% tariff, effective alongside the port fees, is implemented from October 14th, but it does not apply retroactively to orders placed before April 2025, provided the equipment is delivered before April 2027.
However, in the proposed amendments announced on October 10th, USTR proposed imposing a new 150% tariff on a range of cargo handling equipment from China, covering gantry cranes, straddle carriers, terminal tractors, and other key equipment. Port authorities insist that these tariffs would effectively make it difficult for US ports to afford such equipment, leading ports to delay expansion and modernization plans for years.
The American Association of Port Authorities wrote in its response to USTR’s statement: “We support efforts to bring maritime industry manufacturing back to the United States. But these ill-conceived trade policy adjustments will cause US ports to slow their modernization pace and fall further behind in competition, precisely as the maritime industry has become a critical focus for national and economic security.”
The association believes that the increased cost of equipment will have to be offset through other aspects of port operations, potentially through measures like reducing employee training funds or capital investment to lower expenses.
It is reported that the American Association of Port Authorities is urging the Trump administration to “rescind these tariff policies” and calling on the government to provide targeted tax credits, port infrastructure funding support, and simultaneously create incentives for the domestic production of container cranes and other cargo handling equipment.
