U.S. port operators are urging the Trump administration to delay plans for new tariffs on Chinese-made cranes.
According to a July 9 report by *The Wall Street Journal*, port operators warn that if the Trump administration proceeds with the tariffs, the cost of upgrading critical port equipment could surge by tens of millions of dollars.
Currently, 80% of the ship-to-shore (STS) cranes used in U.S. ports are manufactured in China. U.S. ports and private terminal operators say Chinese cranes are favored due to their ample supply and low cost. The tariffs would only penalize ports that ordered cranes before the tariffs were proposed, without addressing the shortage of non-Chinese alternatives. Building sufficient U.S. production capacity could take about a decade.
As part of broader efforts to counter China’s dominance in the maritime industry, the Trump administration is considering new tariffs on Chinese-made cranes and other cargo-handling equipment. Industry sources say these tariffs would be in addition to the existing 25% tariff on Chinese cranes imposed during the Biden administration. Trump’s trade team is also weighing other tariffs targeting China.
Port and terminal operators worry the tariffs would impose extra costs on ports that ordered cranes long before the new policy was proposed, while failing to account for the severe shortage of manufacturers outside China.
The report notes that 80% of STS cranes in U.S. ports are produced by China’s ZPMC, far outpacing competitors like Finland’s Konecranes and Germany’s Liebherr.
Carl Bentzel, president of the American Association of Port Employers, said he has repeatedly visited the White House to urge senior officials to give ports more time to find alternative suppliers.
“They say, ‘We’ll impose punitive tariffs high enough to ensure you stop buying Chinese equipment.’ But we need a transition period,” Bentzel said.
According to U.S. government data, China currently accounts for over 70% of global STS crane production. U.S. officials claim Chinese control of critical infrastructure poses economic and “national security” risks, even making unfounded allegations that some Chinese cranes contain communication devices that could be used for espionage.
*The Wall Street Journal* reports that industry sources say Chinese cranes are popular due to their affordability and availability, with an average price of about $15 million per unit—millions less than the cheapest non-Chinese alternatives.
They also note that the U.S. currently lacks domestic alternatives, and even if smaller foreign manufacturers expand production, they would struggle to meet U.S. port demand.
The proposed tariffs on Chinese cranes are under review by the U.S. Trade Representative (USTR), which previously investigated China’s dominance in the maritime sector during the Biden administration.
At a May 19 USTR public hearing, discussions focused on two key proposals: a 100% tariff on STS cranes and tariffs ranging from 20% to 100% on cargo-handling equipment like containers, chassis, and chassis parts.
Cary Davis, president and CEO of the American Association of Port Authorities (AAPA), representing 81 U.S. public ports, said while the group supports the goal of domestic crane production, Congress should first incentivize capacity through tax credits. “The U.S. has no STS crane manufacturers. This hasn’t been the case since at least the 1980s,” he testified.
In a written submission, Davis explained that outside China, only three companies globally offer internationally sourced STS cranes—Japan’s Mitsui E&S and Europe’s Konecranes and Liebherr—but none have sufficient capacity to meet demand.
Earlier this year, Port of Houston CEO Charlie Jenkins told USTR hearings that discussions with multiple crane manufacturers suggest it could take a decade to build adequate U.S. production capacity. He added that Houston may need to order 22 cranes in the next six years, potentially facing up to $100 million in tariffs.
With crane delivery times stretching up to two years, operators are urging the government to exempt orders placed before the end of 2024 and proposing a three-year delay on tariffs for new orders to allow U.S. or allied manufacturers time to expand.
Earlier this year, USTR also decided that starting mid-October, owners and operators of Chinese-made ships entering U.S. ports will face new fees.
Additionally, USTR is considering fees on foreign-made car carriers entering U.S. ports, a move opposed by shipping groups. The U.S. Chamber of Commerce warns this could disrupt auto supplies and raise vehicle costs by about $300 per car.
On April 10, Chinese Foreign Ministry spokesperson Lin Jian responded to U.S. pressure on China’s shipbuilding industry, stating that China’s advancements stem from technological innovation and market competition, contributing significantly to global trade and supply chain stability. Multiple U.S. studies show America’s shipbuilding industry lost its competitive edge years ago due to overprotection.
Lin emphasized that blaming China for U.S. problems lacks factual basis and economic logic. Unilateral, protectionist measures will only raise global shipping costs, disrupt supply chains, harm global interests, and ultimately fail to revive U.S. shipbuilding.
