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ICS Warns U.S. Against Unintended Impact of China Tariffs at Section 301 Hearing

The International Chamber of Shipping (ICS) has raised alarm bells over potential fallout from proposed U.S. trade remedies targeting China’s maritime logistics and shipbuilding industry, warning of unintended disruptions to American supply chains.

Over two days in Washington, D.C., more than 60 witnesses testified before the Section 301 Committee as part of the U.S. Trade Representative’s investigation into China’s role in the global shipbuilding ecosystem. Among them was Guy Platten, Secretary General of International Chamber of Shipping, who addressed the risks tied to implementing tariffs or fees on Chinese-operated and Chinese-built vessels.

Platten’s message was clear: hitting the brakes on Chinese-built ships might not stop China—it might just stall American trade.

“When looking at our sector, the shipping industry is one of the most cost-optimized in the world,” Platten told the Committee. “The business model is designed to drive down costs, while not compromising on safety standards, so that goods can efficiently flow from and to countries.”

Platten emphasized that the global shipping sector isn’t built like traditional industries. It’s a delicate web, built for efficiency and cost-effectiveness. The risk, he explained, is that by trying to curb Chinese influence, the U.S. could isolate itself from the very vessels that keep its economy running.

The ICS acknowledged the intent behind the proposed measures—to bolster U.S. shipbuilding—but argued the current plan misses the mark. Imposing fees on Chinese-affiliated vessels won’t curb China’s dominance in shipbuilding, Platten argued, but it could “severely disrupt U.S. maritime supply chains” and “threaten the U.S.’ energy, food, and economic security.”

Platten didn’t mince words when discussing the human cost either. “These proposed measures could hurt our customers – the American people. They will make vital U.S. exports less competitive globally. This hurts jobs, be that at ports or at farms, and the American shipping industry, the very thing you are trying to encourage.”

The message landed: proceed with caution. The ICS urged the U.S. Trade Representative to reconsider the approach and explore policy alternatives that support domestic shipbuilding without undercutting the broader logistics network that U.S. exporters and importers depend on.

ICS also offered to collaborate directly with the USTR and the White House, aiming to craft “practical, future-focused solutions” that reinforce maritime resilience without disrupting global trade dynamics. The ball, now, is in Washington’s court.

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