The United States Trade Representative’s Office (USTR) has announced revisions to the Section 301 actions, including the removal of the LNG export ratio restrictions, a decrease in non-U.S.-made automobile transport ship rates, and a clear exemption for specific vessels serving the U.S. military.
Despite adjustments to specific details, the USTR emphasizes that the overall strategic goals remain unchanged, focusing on reducing dependency on China and rebuilding America’s dominance in the maritime sector.
In January 2025, the USTR released a report on the Section 301 investigation, highlighting the Chinese Communist Party’s attempts over the past 30 years to control the shipping, logistics, and shipbuilding industries, causing substantial harm to American businesses, workers, and the economy.
In response, the USTR announced a series of actions on April 17, including levying fees and restrictions on specific Chinese shipping services. The plan is set to be implemented in two phases: the first phase will impose preliminary charges starting from October 14, 2025, and the second phase will restrict the shipment of LNG (liquefied natural gas) to be transported on U.S.-made vessels unless importers already have orders for U.S.-made vessels, starting from April 17, 2028.
According to the revision content from last Friday, the USTR has removed the clause in Appendix IV that stated LNG export permits could be suspended if exporters did not meet a certain proportion of using U.S.-made and operated vessels, effective since April 17, 2025.
Rob Jennings, the Deputy Vice President of the Natural Gas Market at the American Petroleum Institute (API), remarked on June 9, “This is a step in the right direction, and we look forward to working with the USTR to find solutions that will keep U.S. LNG competitive in the global market.”
The USTR has also lowered port fees for non-U.S.-made automobile transport ships (Roll-on/Roll-off ships), reducing the charge from $150 per car equivalent unit (CEU) to $14 per net ton, effective from October 14, 2025. This fee will be added on top of the 25% tariffs imposed by the Trump administration on imported cars.
Furthermore, three types of vessels will be exempt from fees:
1. U.S.-registered vessels participating in the Maritime Security Program (MSP)
2. Vessels owned or operated by the U.S. government
3. Vessels carrying U.S. government cargo
MSP vessels carry out commercial missions during peacetime but can be called upon for national defense transport in times of war, serving critical strategic functions. This move also addresses concerns in the industry about blanket fee impositions undermining military transportation capabilities.
The USTR has proposed modifying regulations to consider expanding LNG export data reporting from port operators to ship owners or operators, aiming to enhance monitoring accuracy and policy enforcement.
These revisions are made under Section 307 of the Trade Act of 1974, which allows authorities to amend measures when they are no longer deemed appropriate.
Since June 6, the USTR has opened a public comment period, with the deadline set for July 7.