The Office of the United States Trade Representative (USTR) announced modifications to certain aspects of Section 301, originally introduced on April 17, 2025, as part of the administration’s efforts to strengthen U.S. shipbuilding. The agency also proposed additional changes to the action and opened a new public comment period. (Section 301 of the Trade Act of 1974 authorizes the USTR to investigate and respond to foreign trade practices the agency deems unfair.)
According to USTR, the changes follow a review of public comments received in response to Federal Register notices published on April 23 and June 12, 2025, as well as consultations with petitioners and advisory committees.
Key updates include:
- Revising the basis for calculating service fees on vessel operators of foreign-built vehicle carriers and setting the fee at $46 per net ton, effective October 14, 2025.
- Eliminating, retroactive to April 17, 2025, a provision that allowed for suspension of liquid natural gas (LNG) export licenses if certain restrictions on foreign-built vessels were not met.
- Imposing a 100% tariff on certain ship-to-shore cranes and cargo handling equipment.
In addition to these changes, USTR is also proposing:
- Adding an exemption from fees for specific ethane and liquid petroleum gas (LPG) carriers operating under long-term charters.
- Imposing additional tariffs of up to 150% on certain cargo handling equipment and components, such as rubber-tire gantry cranes.
While these proposals are under review, payment of certain service fees may be deferred through December 10, 2025, as outlined in the agency’s notice.
The deadline to submit written comments on the proposed further modifications is November 12, 2025. Click here to view the unpublished version of USTR’s notice and proposed modifications and here to submit comments.