US and China are on the brink of a new trade war
Photo: Chinese leader Xi Jinping and US President Donald Trump (GettyImages)
The trade dispute between the US and China is escalating after new port fees came into effect. On Tuesday, both countries began imposing additional charges on each other's ships, according to the BBC.
China said that the fees are meant to protect its shipping industry from “discriminatory” actions by the US. They apply to ships owned or operated by American companies, especially those where American capital makes up more than 25% of the ownership.
Beijing announced these measures last week, along with the introduction of controls on exports of rare earth metals. In response, US President Donald Trump threatened additional 100% tariffs on Chinese goods.
Meanwhile, new tariffs on imports of wood, furniture, and kitchen equipment, much of which comes from China, have come into effect in the US.
US Treasury Secretary Scott Bessent said that Trump and Chinese leader Xi Jinping may meet in South Korea in late October to discuss de-escalation.
“The 100% tariff does not have to happen... The relationship, despite this announcement last week, is good. Lines of communication have reopened, so we'll see where it goes,” Bassent said.
Beijing, meanwhile, has emphasized that it is ready for both negotiations and confrontation.
"China's position is consistent. If there's a fight, we'll fight to the end; if there's a talk, the door is open. The US cannot demand talks while simultaneously imposing new restrictive measures with threats and intimidation. This is not the right way to engage with China," said a spokesperson for the Chinese Ministry of Commerce.
Chinese state media accused the US of violating the maritime agreement between the countries.
According to the media, the port fee for American ships will be 400 yuan per ton and will increase annually, reaching 1,120 yuan in 2028.
Experts estimate that some large ships will have to pay up to $3 million this year and more than $10 million by 2028. At the same time, Chinese ships, which make up almost half of the world's fleet, have been exempted from the new fees.
Trade tensions between the US and China
Earlier, the United States and China agreed on a tariff truce. The parties agreed to gradually abolish high tariffs, which previously threatened to halt trade between the countries.
However, on October 9, China announced strict controls on the export of rare earth minerals and related technologies.
And on October 11, the US imposed a 100% tariff on goods from China and export controls on all critical software.
US leader Donald Trump announced that the decision to impose new restrictions was a response to Beijing's “ extraordinarily aggressive position.” They will take effect on November 1, 2025, or possibly even earlier.
