Tensions between China and the United States have sharply escalated, marking a new low in their already strained relationship. Recently, US President Donald Trump announced that the United States will impose a 100 per cent tariff on Chinese goods "over and above any tariff that they are currently paying," effective November 1, 2025. Furthermore, he also stated that export controls will be placed on all critical software starting the same day. This comes in response to China's ramping up of restrictions on rare earth exports, expanding its control list, and extending curbs to cover production technologies and overseas applications, including those in the military and semiconductor sectors.

In what can be considered a calculated, albeit retaliatory measure, China has now taken an additional action against the United States. China has officially begun charging a special port fee on ships that are US-owned, operated, built, or flagged, effective Tuesday. According to China's state broadcaster CCTV, this special fee will be applied to American vessels carrying cargo to Chinese ports. Ships built in China will be exempt from the special fees. This fee exemption will also apply to empty vessels arriving for repairs, as well as certain special categories of ships.

Meanwhile, China on Sunday defended its latest export control measures on rare earths and related items as a legitimate action to safeguard global peace, warning the US of "resolute measures" if President Donald Trump proceeds with his threat to impose 100 per cent tariffs on Chinese exports.

According to the Reuters report, Analysts stated that, although comparatively few U.S.-constructed or U.S.-flagged ships participate in international shipping, but China's rules could capture many more vessels than might otherwise be apparent. This is because the new tariffs will also apply to companies in which U.S.-based investment funds own or control 25% or more of the shares or the board of directors, thereby broadly expanding the scope of the rule well beyond vessels directly owned by Americans.

The directive clearly states that if a U.S. vessel docks at a Chinese port, it will be required to pay the "special port fee" once during its first entry. If the same vessel makes multiple visits within a year, the fee will apply to its first five voyages.

After that, a new billing cycle will begin every year on April 17, effectively resetting the count. The notice further warns that ships failing to pay the required fee will have their import and export procedures suspended until payment is made.

Big blow to Donald Trump! China strikes back after US President's 100 percent tariff move, increases fees on...