Proposed US port fees on China-built ships begin choking exports of coal and agriculture

President Donald Trump's plan to revive US shipbuilding using massive fees on China-linked ship visits to American ports is causing American coal inventories to swell and stoking uncertainty in the embattled agriculture market, as exporters struggle to find ships to send goods abroad.

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Mr. Trump is drafting an executive order that would rely on funding from a US Trade Representative (USTR) proposal to levy fines of up to US$1.5 million (S$2 million) on China-made ships or vessels from fleets that include ships made in China.

Those potential port fees have limited the availability of ships needed to move agriculture, energy, mining, construction, and manufactured goods to international buyers, according to major US exporters and transportation providers in interviews with Reuters, letters to US officials, and comments ahead of USTR hearings next week.

Vessel owners have already refused to provide offers for future US coal shipments due to the proposed USTR fees, Xcoal Energy & Resources chief executive Ernie Thrasher said in a letter to US Commerce Secretary Howard Lutnick dated March 12 and seen by Reuters.

Enacting and implementing those fees could cease exports of US coal within 60 days, putting US$130 billion worth of shipments at risk, Mr. Thrasher said. He added that the fee structure could add up to 35 per cent to the delivered cost of US coal, making it uncompetitive in the global market.