US President Donald Trump, who claims to take a tough stance on China, has taken a step that is being called America’s surrender to China. The US has suspended new port fees imposed on Chinese ships, prompting strong criticism of Trump in the US. America’s opposition Democratic Party (Democratic Party) says that Trump is softening his stance on China. US trade unions are also unhappy with Trump’s decision to suspend port fees.
Amid trade tensions, the US and China recently imposed port fees on each other’s ships. The decision to suspend port fees came after President Trump and Chinese President Xi Jinping met during a summit in South Korea last month. First the US removed the port fees, after that on Monday China also removed the fees from the US ships.
Given the number of Chinese ships, the US benefited from imposing port fees. Now that these fees have been suspended, the US opposition and trade unions are outraged.
What are trade unions saying about Trump’s decision?
While shipowners believe the move will help cut costs and boost trade, trade unions have warned it would weaken US naval power and send the wrong message to China. They say this is contrary to the Trump administration’s rhetoric of holding China accountable.
Maritime expert Hunter Stires, who served as a strategic adviser to US Navy Secretary John Phelan until June, called the suspension “a serious strategic mistake” in a comment sent to the US Trade Representative (USTR) office on social media on Monday.
According to the Hong Kong newspaper “South China Morning Post” (SCMP), they said that the removal of US port fees on more than 10,000 Chinese ships while China waived port fees on only 183 US ships is actually a surrender by the US, which is being portrayed as a false balance.
What did the members of parliament of the Democratic Party (Democratic Party) say?
US opposition lawmakers and industry leaders say the move could undermine US maritime interests in the long run.
In a November 7 letter to USTR Jamieson Greer, ranking member of the House Select Committee on China Raja Krishnamurthy and Congressman John Garamundi wrote that stopping or reducing the collection of port fees established under Section 301 would further delay the process of rebuilding this important region in the United States.
Congressmen Raja Krishnamurthy, Democrat of Illinois, and John Garamundi, Democrat of California, said the Trump administration has been saying it will revive America’s maritime industry, but this recent move represents a renege on that promise.
Why and how much fee did the US impose on Chinese ships?
The U.S. imposed a $50 per ton fee on all Chinese-made, Chinese-owned, or Chinese-bound vessels for docking at U.S. ports, which took effect on October 14. The fee was based on the results of an investigation launched during the Biden administration. That investigation found that China’s heavy subsidies and protectionist policies had given it a global shipbuilding advantage.
Like Democrats, several American trade unions have expressed dismay at the decision. In a joint statement, the United Steel Workers, the International Association of Machinists and Aerospace Workers, the International Brotherhood of Boilermakers, and the International Brotherhood of Electrical Workers said the move would once again open up China in its policies and harm efforts to rebuild the US maritime domain.
The statement added that workers, shipyards and our national interests are once again being sidelined for short-term political gain.
However, supporters of the move say suspending port fees will provide relief to the shipping industry and stabilize global supply chains amid trade tensions.
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