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This tariff proposal doesn't look economically rational, and so the final decision would probably be economically detrimental. In general, I suspect the market will eventually discipline the US government, just like what happened to its great rival China/CCP.
US plan to tax Chinese ships hits choppy waters as backlash intensifies
The proposed fees would raise costs for shipping companies by millions of dollars per voyage, as container vessels serving the US market typically call at three to four ports in the country per trip, according to Kramek.
About 98 per cent of all US port calls could be subject to the charges, which would amount to an additional tax on American consumers of up to US$30 billion annually, according to WSC estimates.
Meanwhile, Kramek pointed out that there were currently only 30 US-built container ships active today, with an average age of 24 years – meaning most are near the end of their typical lifespan of 20-30 years.
American business groups have also voiced opposition to the proposals. On Monday, the National Retail Federation and the Retail Industry Leaders Association submitted joint comments to the USTR, warning that the proposal’s harmful effects would ripple across the national economy.
“US businesses and consumers will take the brunt of these service charges and be forced to bear increased costs for a wide array of commodities with little to no alternatives as many, if not all, of the leading ocean carriers capable of meeting US shipping needs use Chinese-built vessels in their fleets,” the two organisations wrote.
https://www.scmp.com/economy/china-econo...ntensifies
US plan to tax Chinese ships hits choppy waters as backlash intensifies
The proposed fees would raise costs for shipping companies by millions of dollars per voyage, as container vessels serving the US market typically call at three to four ports in the country per trip, according to Kramek.
About 98 per cent of all US port calls could be subject to the charges, which would amount to an additional tax on American consumers of up to US$30 billion annually, according to WSC estimates.
Meanwhile, Kramek pointed out that there were currently only 30 US-built container ships active today, with an average age of 24 years – meaning most are near the end of their typical lifespan of 20-30 years.
American business groups have also voiced opposition to the proposals. On Monday, the National Retail Federation and the Retail Industry Leaders Association submitted joint comments to the USTR, warning that the proposal’s harmful effects would ripple across the national economy.
“US businesses and consumers will take the brunt of these service charges and be forced to bear increased costs for a wide array of commodities with little to no alternatives as many, if not all, of the leading ocean carriers capable of meeting US shipping needs use Chinese-built vessels in their fleets,” the two organisations wrote.
https://www.scmp.com/economy/china-econo...ntensifies