Starting from November 9, the United States will impose a 100% tariff on “ship-to-shore cranes” and other cargo handling equipment manufactured in China. The American Association of Port Authorities (AAPA) immediately declared that the port industry is facing the challenge of additional taxes. However, this also presents opportunities for crane manufacturers in Japan, Germany, Finland, and other countries.
According to the announcement released by the Office of the United States Trade Representative (USTR) on October 10, the 100% tariff will target ship-to-shore cranes manufactured in China, or by companies controlled by Chinese citizens, or those using Chinese components. The tariff will also cover various intermodal chassis and parts. Equipment that was contracted before April 17 of this year and enters the United States by April 18, 2027, will not be taxed.
USTR is also considering imposing a maximum 150% tariff on a range of other equipment, including imported rubber tyred gantry cranes, rail-mounted gantry cranes, automated stacking cranes, terminal tractors, straddle carriers, top loaders, and their corresponding components.
On October 14, AAPA issued a statement stating that imposing additional tariffs on equipment necessary for supply chain expansion and resilience is becoming a challenge for the U.S. port industry. Cary Davis, President, and CEO of the association said, “Increasing tariffs by another 100% on Chinese cranes will not magically rejuvenate the crane manufacturing industry that has been non-existent in the United States for decades.”
This will force publicly-run port authorities to pay more for the cranes they have ordered. He mentioned, “When tax policies cause prices to double overnight, ports of all sizes will struggle to fund large, modern, and world-class equipment like cranes, leading to a choice between affordable equipment or outdated options.”
Davis further stated, “AAPA supports the efforts of the Trump administration to bring critical manufacturing back to the United States, but taxing essential equipment will not bring prosperity to the manufacturing industry; it will only increase the freight costs for U.S. ports.”
Surveys by AAPA and the Maritime Administration show that approximately 80% of the ship-to-shore cranes ordered by U.S. ports and scheduled for procurement in the next ten years are labeled as “Made in China.” If a 100% tariff is imposed, ports will have to pay an additional $6.7 billion. Global Trade magazine reported that the eight cranes ordered by the Port of Houston in Texas from Shanghai Zhenhua Heavy Industries Co., Ltd. (ZPMC) are expected to be delivered in 2026, costing about $15 million each without tariffs. With tariffs, an additional $302 million will be needed.
Shipping data indicates that over 70% of the global production of cranes is made in China, offering stable supply and low prices due to the country’s surplus production capacity and low labor costs. For decades, U.S. ports have heavily relied on these cranes.
However, Chinese-made cranes are equipped with complex sensors that can track the origin and destination of containers, raising concerns about U.S. cargo information and military security. In 2024, Congress imposed a 25% tariff on Chinese-made cranes.
The taxation on Chinese-made cranes may create opportunities for counterparts from other countries, including Konecranes in Finland, Mitsui E&S in Japan, and its wholly-owned subsidiary in the U.S., PACECO® Corp., as well as Liebherr in Germany.
On September 17, PACECO and Mitsui E&S announced that they will provide two ship-to-shore cranes for Total Terminals International, LLC at the Port of Long Beach, to be manufactured in Japan with key components supplied by the U.S., expected to be operational by 2027.
Troy Collard, Sales Manager of PACECO, stated, “This order highlights the transition of the U.S. container handling market from a heavy reliance on Chinese manufacturers.” The new cranes will be able to handle 24,000 standard 20-foot containers, demonstrating that alternative solutions can meet the needs of U.S. ports while supporting broader national security and resilient supply chain goals.
Previously, in August, PACECO delivered six rubber-tyred gantry cranes to the Port of Long Beach, utilizing an energy-efficient battery-electric hybrid system. Last year, the company deployed the first hydrogen-powered rubber-tyred gantry crane at the Port of Los Angeles.
Originally an American company, PACECO introduced the world’s first dedicated ship-to-shore crane in 1958, making container shipping the mainstream of global trade. The company is now owned by Mitsui, but its production cycle for cranes (24-36 months) lags behind that of ZPMC (18-24 months).
Jonah Berg-Ganzarain, Communications Manager at TRC Companies Inc., believes that this contract with the Japanese companies demonstrates viable alternative solutions. With the capacity to provide long-term security to the busiest U.S. ports, these cranes can use clean energy and incorporate parts from the U.S., aligning advanced infrastructure investments with U.S. supply chains.
In June, Liebherr delivered two new 50-gauge ship-to-shore cranes to the Jacksonville Port Authority (JAXPORT) in Florida, being installed at the Blount Island Marine Terminal and expected to be operational by the end of the year. Additionally, a third crane is expected to be delivered in December.
Kone Group announced last year that it has established a network of partners for port crane manufacturing in the U.S., including steel structure suppliers and subcontractors. The company has three crane manufacturing facilities in the U.S., but it will take several years to manufacture and deliver cranes that meet U.S. standards.