Part 1 of 4 in our series, “Six Weeks That Decide the Fleet: September 24 to November 9 — what happens to a fee meant to protect American shipyards.”
What This Series Covers
– How a 2024 labor petition turned into a real trade penalty on Chinese shipping — and why it barely survived a week
– Who’s financially backing the fight to kill that penalty, and what’s separately been reported about that same company
– What to watch for when President Trump hosts Xi in Washington on September 24
– What the people actually building ships and running unions told Congress this month, in their own words
– What happens on November 9 — the day the fee’s one-year suspension runs out
Where Things Stand, Briefly
For readers who want the fuller picture: three years in, there’s real progress and real gaps. On the plus side — an executive order creating a national maritime strategy, a $65.8 billion Navy shipbuilding request for FY2027, and a new submarine-component factory in Alabama already producing parts. On the other side — the U.S.-flagged oceangoing fleet actually shrank to 178 ships last year, the Maritime Security Trust Fund still isn’t law, and the industrial base has lost up to 40% of its waterfront facilities over two decades. Read the full three-year accounting →
A fee designed to protect American shipbuilding jobs lasted six days before someone made it disappear. This is the story of who did it, and why it should bother you even if you’ve never thought about a shipyard in your life.
Three years ago, we started asking a simple question: who pays for American naval readiness? Congress. Taxpayers. Shipyard workers who show up at 5am to weld hulls in the summer heat. That question is the whole reason Americans for a Stronger Navy exists.
This year we learned there’s a second question hiding behind the first one: who pays to make sure we never have to.
Two facts below are worth reading side by side. We’ll let you draw your own conclusion.
Let’s walk through it.
The Fee Nobody Remembers Was Labor’s Idea
This didn’t start in Washington. It started with the people who actually weld the hulls.
In March 2024, five American labor unions — not a think tank, not a senator, not us — petitioned the U.S. Trade Representative to investigate China’s dominance of global shipbuilding.[1] They’d watched it happen up close for years: American shipyards closing, skilled jobs disappearing, an entire industrial base hollowing out while China built ships by the hundreds. Nobody in Congress had acted on it yet. The workers went first anyway.
USTR agreed there was a real problem, opening a Section 301 investigation — a legal process the government uses to investigate unfair foreign trade practices. By early 2025, nearly a year after the unions first raised the alarm, the investigation confirmed what they’d been saying all along: China’s practices were “unreasonable” and burdened U.S. commerce.[2] The remedy: a modest port fee on Chinese-built and Chinese-operated vessels calling at U.S. ports — money that would help fund the rebuilding of America’s own shipbuilding capacity.[3]
The fees took effect October 14, 2025. Six days later, at a summit in South Korea, they became a bargaining chip.[4] By November 10, they were suspended for a full year — paused at $0, with the scheduled 2026 rate increase simply never happening.[5]
Two senators, one from each party, have since asked the obvious question: what exactly did the United States get in exchange for giving that leverage away?[6] As of this writing, nobody in the administration has given them a straight answer.
Who Wanted the Pause
We already knew part of this story. Our 2025 Navy year-in-review documented over $3 million in lobbying spent fighting the SHIPS for America Act and the fees meant to fund it — six times what was spent supporting it.[7] The National Retail Federation alone spent $2.27 million. The American Apparel & Footwear Association, the Consumer Technology Association, the Travel Goods Association, and the U.S. Chamber of Commerce rounded out the list.
What we didn’t know then was how organized that campaign actually was. In March 2025, NRF and the Retail Industry Leaders Association — joined by more than thirty other organizations — jointly commissioned an economic study designed to make the case to USTR that the fees would hurt American consumers.[8] Their own words: “U.S. businesses and consumers will take the brunt of these service charges… many, if not all, of the leading ocean carriers capable of meeting U.S. shipping needs use Chinese-built vessels in their fleets.”
Read that sentence again. Their argument for keeping shipping cheap is that America has become so dependent on Chinese-built ships that we can’t afford to stop being dependent on them.
The Part Nobody’s Said Out Loud
Here’s what we found that nobody else has connected: the same interests fighting these fees include the company the fees were written to counter.
Companies are legally required to disclose who pays them to lobby the government — public paperwork anyone can look up. Those U.S. Senate filings show COSCO — China Ocean Shipping Company — and China Shipping Group are named directly, by address and by percentage of ownership, as the entities behind the World Shipping Council’s American lobbying activity.[9] Not a shell. Not an inference. Their names are on the federal paperwork, filed through two U.S. law and government-relations firms: Cozen O’Connor Public Strategies, and Shamrock Maritime Consultants.
In April 2025, Maritime Executive ran a headline that should have gotten more attention than it did: “Shipping Industry Joins with China Calling for U.S. to Reconsider Port Fees.”[10] The World Shipping Council’s objections and Beijing’s official objections were, functionally, the same argument, published within days of each other.
What Kind of Company Is Paying for This
Separately: just over a week ago, the Foundation for Defense of Democracies reported that COSCO uses concealed equipment aboard its own ships to intercept U.S. military communications near American coastlines.[11] The Pentagon put COSCO on its list of companies linked to the Chinese military back in January 2025.[12] Chinese law requires companies like COSCO to support state intelligence work whether they want to or not.
We’re not going to tell you what to make of those two facts sitting next to each other. Americans can draw their own conclusions.
What Wasn’t Said at Hudson
On September 16, the Hudson Institute hosted senators, industry, and labor to talk through the SHIPS Act’s path forward. Heritage’s Brent Sadler raised Chinese state shipping as an espionage vector, in general terms.[13] Sen. Todd Young described, without naming anyone, an uncomfortable conversation with congressional colleagues who wouldn’t answer whether they were comfortable continuing to route cargo through Chinese-owned shipping companies given what’s now known about tracking and targeting systems aboard some of those vessels.[14]
Nobody drew the line all the way through. Nobody said: the resistance you’re describing has a name, an address, and a line item on a federal disclosure form.
We’re Not Anti-Business. We’re Pro-Paying-Your-Share.
We’ve said from the start that this isn’t about picking a fight with retailers or the shipping industry. Companies are allowed to lobby for their interests — that’s how the system works, and we’re not interested in relitigating that.
What we’re saying is simpler than that: here are the facts, here’s who’s named on the paperwork, and here’s what’s been separately reported about that same company. Judge for yourself what it means that they line up the way they do.
The Clock
The fee suspension expires November 9, 2026. That’s the next real decision point — not a hearing, not a letter, an actual expiration date with a binary outcome: reinstate, extend, or let it lapse further.[5]
There’s an earlier date worth watching first. On September 24 — 46 days before that expiration — President Trump hosts Xi Jinping in Washington for their second summit of the year. The first time these two men met at a summit, the port fees became a bargaining chip within six days.[4] The Heritage Foundation’s own pre-summit brief argues this meeting should be judged by whether China shows “measurable progress on its previous commitments,” not by how many new deliverables get announced.[16] We’d add the obvious corollary: that standard should apply to what the United States gives up, too.
If the port fee comes up again on or around September 24 — as a “goodwill gesture,” a “de-escalation step,” or anything else dressed up as diplomatic progress — that won’t be a new development. It will be the same pattern repeating, with the same question still unanswered: what did the first suspension buy us?
Sen. Mark Kelly put the underlying stakes plainly at Hudson: 400 U.S. oceangoing ships during Desert Storm. Eighty today.[15]
Three years in, we’ve learned who’s supposed to pay for rebuilding the fleet. This year we learned who’s paying, quietly, to make sure that never happens.
Next in “Six Weeks That Decide the Fleet”: what to watch for when Trump hosts Xi in Washington on September 24 — and whether the same trade happens twice.
References
[1] Petition to USTR, five national trade unions, March 12, 2024, cited in Clyde & Co, “USTR Section 301 Fee and Tariff Measures and Their Impact to Charterparties.”
[2] USTR, Section 301 investigation determination, January 16, 2025.
[3] Federal Register, “Notice of Action and Proposed Action in Section 301 Investigation,” April 23, 2025.
[4] White House Fact Sheet, November 1, 2025; Hellenic Shipping News, “US-China Port Fee Truce.”
[5] Federal Register, “Notice of Modification of Section 301 Action,” November 13, 2025.
[6] Sens. Mark Kelly and Elizabeth Warren, letter to USTR Ambassador Jamieson Greer, June 2026.
[7] Americans for a Stronger Navy, “2025 U.S. Navy Year in Review — Follow the Money: Who’s Fighting Against American Shipyards.”
[8] Textile World / National Retail Federation, “Retailers Submit Comments In Opposition To USTR Shipping Remedies Proposal,” March 24, 2025.
[9] U.S. Senate Lobbying Disclosure Act filings, Cozen O’Connor Public Strategies and Shamrock Maritime Consultants, LLC, client World Shipping Council.
[10] Maritime Executive, “Shipping Industry Joins with China Calling for U.S. to Reconsider Port Fees,” April 18, 2025.
[11] Foundation for Defense of Democracies, “Yes, China’s State-Owned Shipping Giant Is Spying on the United States,” September 9, 2026.
[12] U.S. Department of Defense, list of companies linked to the Chinese military, January 2025.
[13] Hudson Institute, “Fixing Shipping and Shipbuilding: Plotting the Course Ahead,” September 16, 2026.
[14] Ibid.
[15] Ibid.
[16] Andrew Harding, “Xi Comes to Washington: Expectations for the Trump-Xi Summit,” The Heritage Foundation, September 9, 2026.






