port fee to become a new point of peace in the trade relationship between the United States and China. President Donald Trump and President Xi Jinping have finally reached an agreement that marks an important pause in the trade tensions between the two countries. The agreement sets a one-year moratorium on the U.S. port-fee policy for ships associated with China.
This step was announced by Office of the United States Trade Representative (USTR) on November 6, 2025, a few days after the bilateral meeting between Trump and Xi on the sidelines of the APEC Summit in Busan, South Korea.
Background: From Investigation to Trade Diplomacy
U.S.–China trade relations have heated up again since early 2024, when the USTR launched an investigation under Section 301 of the Trade Act of 1974 regarding the practices of the Chinese shipbuilding industry. Washington accuses Beijing of providing massive subsidies to its maritime logistics sector, thereby creating an unfair competitive advantage in the global market.
According to the report, in 2023 China produced more than 50 percent of the world's total ship tonnage — a drastic jump from around 5 percent in 1999. This dominance raises concerns among industry players and labor unions in the U.S. The Trump administration is also preparing a retaliatory policy in the form of port fees against ships owned or manufactured in China that dock at U.S. ports.
However, that policy triggered protests from the global shipping industry, which warned of potential supply chain disruptions and surges in container prices. The increasing political and economic pressure is pushing the White House to pursue negotiations.
Busan Agreement: One-Year Moratorium on Port Fees
The meeting between Trump and Xi in Busan became a turning point. During a closed-door dialogue on the sidelines of the APEC 2025 forum, the two of them agreed to suspend all policies. port fees which was previously planned to start on October 14, 2025. With this new agreement, the suspension takes effect starting 10 November 2025 to 10 November 2026.
As a concession, China will also suspend countermeasures against U.S.-flagged or U.S.-affiliated ships that had previously been imposed. That means the two countries will freeze the escalation of maritime policy for a full year to provide room for broader negotiations.
Although the policy is not permanently removed, this suspension is considered as “confidence-building measureor steps to build trust in the midst of bilateral relations that are often tense.
Technical Details: Suspended Policy
Before it is repealed, the policy draft. port fees The US covers fairly large costs. Ships that are owned, operated, or built by Chinese entities are subject to tariffs between USD 18–50 per net tonnage, depends on the size and type of the ship. Some early versions even proposed fixed costs up to USD 1–1.5 million per port call.
This policy is designed as part of Washington's strategy to curb China's maritime expansion and spur the revival of the domestic shipbuilding industry. However, with a one-year pause, its implementation now depends on the outcome of further negotiations between the two countries.
Global Implications: Between Stability and Uncertainty
Analysts say that the deferral of port charges provides a crucial pause for the global supply chain. The international shipping industry, which had previously feared rising trans-Pacific container costs, is now breathing a sigh of relief.
However, several things are still unclear. First, what is the concrete target of this year's one-year negotiations? Secondly, would China be willing to open its shipyard sector to a fairer competition? And third, how strong is the US commitment to reviving its industry without sacrificing trade relations?
Some circles consider this agreement to be more tactical than strategic. "A one-year pause is merely a cooling measure, not a permanent solution," said one of the international trade analysts in Washington.
Meanwhile, Asia's shipping sector is closely monitoring this development. Many logistics companies are considering adjustments to routes and capacity, especially if some Chinese ships divert their routes to avoid the uncertainty in the U.S. market.
Impact on Southeast Asia: Opportunities for Indonesia
For Indonesia and the ASEAN region, a policy pause port fee This has the potential to open up new opportunities. If Chinese ships choose to divert part of their operations away from U.S. ports, Asian trade routes could undergo significant adjustments.
Large ports such as Tanjung Priok, Tanjung Perak, and Patimban can take on a larger role as an alternative. transshipment hub in the Asia-Pacific region. In addition, Indonesian logistics operators can benefit from the temporary increase in container traffic.
Besides the positive potential, there are also risks: changes in routes and tariff patterns could lead to short-term uncertainty in international shipping costs. The Indonesian government is advised to strengthen coordination with national logistics actors in order to be able to adjust its strategy amid these dynamics.
Politics and the Message of Diplomacy
The Trump–Xi agreement in Busan shows that, although harsh in rhetoric, both leaders recognize the need for economic stability ahead of the U.S. election year and a crucial period of economic transition in China.
Trump wants to show the success of trade diplomacy without appearing to concede. Xi, on the other hand, wants to portray China as a partner capable of negotiating pragmatic solutions without yielding to Western pressure.
Both gain political advantages: Trump can assert his position as a master negotiator, while Xi demonstrates the ability to maintain the stability of international relations amid global pressure.
Towards a New Negotiation
Although labeled 'suspension', this agreement opens up space for intensive dialogue between the two countries to discuss deeper issues, ranging from industrial subsidies, logistics supply chains, to the security of sea routes.
The U.S. and China are reported to be forming. joint working group which is tasked with formulating a mechanism for maritime cooperation in the near future. This group will reexamine the policy. port fees and seek a new format that does not disrupt the flow of global trade.
If this negotiation succeeds, then for the first time in a decade, the world's two largest economies may find a more stable common ground in the maritime sector.
Agreement Deferral of port charges This is not the end of the trade war, but a strategic pause that can determine the direction of global economic relations. The world now waits to see whether the coming year will be enough for Washington and Beijing to move from confrontation to collaboration.
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