The Trump administration’s plan to impose port fees of up to $1.5 million per visit on ships built in China or operated by fleets with Chinese vessels is disrupting U.S. coal and agricultural exports, industry leaders warn. The proposed fees, aimed at reviving domestic shipbuilding, have already led to shrinking vessel availability, inflated costs, and fears of catastrophic job losses across critical sectors.
Coal Industry Crisis:
Xcoal Energy & Resources CEO Ernie Thrasher warned in a letter to the Commerce Department that the fees could halt U.S. coal exports within 60 days, jeopardizing $130 billion in shipments and making U.S. coal 35% more expensive globally.
West Virginia coal mines are preparing layoffs as inventories pile up, according to Chris Hamilton of the West Virginia Coal Association.
Agriculture Sector Strain:
U.S. grain traders face uncertainty securing ships for corn, soybeans, and wheat exports, with potential added costs of
372
–
372–930 million annually (American Farm Bureau).
American Soybean Association highlighted that increased transportation costs would erase the competitive edge of U.S. agricultural exports, which totaled $64 billion in 2024.
Energy and Broader Impacts:
The American Petroleum Institute cautioned that fees would hinder oil, LNG, and refined fuel exports, while BIMCO noted no U.S.-built LNG carriers exist to meet proposed mandates.
Only <200 U.S.-flagged cargo ships operate globally, none built domestically in recent years, making compliance with the 20% U.S.-ship requirement nearly impossible.
Industry Backlash:
Stakeholders, including coal, agriculture, and energy groups, will voice concerns at upcoming USTR hearings, arguing the policy risks “catastrophic” job losses and cedes global market share to rivals.