US Congress explores new tariffs, sanctions to counter China’s shipbuilding dominance
US lawmakers are examining tariffs, port fees and sanctions targeting China’s shipbuilding industry, as US Congress searches for ways to rebuild America’s severely diminished commercial fleet without increasing costs for US importers and consumers.
At a House Foreign Affairs Committee hearing on Wednesday, members of both parties described China’s dominance of commercial shipbuilding as an economic and national security vulnerability, but witnesses cautioned that penalties alone would do little to restore US capacity.
“Should Congress implement targeted tariffs or port entry fees on Chinese-built commercial vessels to level the global playing field?” Representative Young Kim, a California Republican, asked during a congressional hearing on Wednesday. “What about sanctions on Chinese state-owned shipbuilders?”
China’s rapid rise in commercial shipbuilding has become an increasingly urgent issue in Washington, joining technology, critical minerals and medical supply chains as sectors where US officials worry Beijing has gained a strategic edge.
“We’re falling further and further behind China,” Representative Ami Bera, a California Democrat, said during the hearing. “By ourselves, we won’t catch up to the Chinese.”
Lawmakers and experts argued that shipbuilding is not only an economic issue but also a national security concern because of its close ties to naval power. Washington has accused Beijing of using state support to expand its shipbuilding industry, allegations China denies.