China hits back at US port fees with retaliatory levies

China will slap port fees on US-owned, operated, built, or flagged vessels on Tuesday as a countermeasure to US port fees on China-linked ships starting the same day, China's transport ministry said on Friday.

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Later in the day, US President Donald Trump said he was raising tariffs on Chinese exports to the US to 100 and imposing export controls on critical software in a reprisal to export limits by China on rare earth minerals.

There are relatively few US-built or US-flagged vessels conducting international trade, but China will ensnare more ships by applying levies to companies with 25% or more of their shares or board seats held by US-domiciled investment funds, analysts said.

"This casts a wide net and could affect many public shipping companies with a listing on US stock exchanges," said Erik Broekhuizen, a marine research and consulting manager at ship brokering firm Poten & Partners.

"The potential impact is significant."

On Tuesday, ships built in China - or operated or owned by Chinese entities - will also need to pay a fee at their first port of call in the United States.

US-based shipping company Matson told customers it is subject to the new China port fees and has no plans to change its service schedule.