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US to levy fees on ships linked to China, push allies to do same

STORY: Any ship built in China or flagged there will face a fee when it docks in the U.S.

That’s according to a draft executive order seen by Reuters on Thursday.

What’s more, the order calls on allies to do the same, or risk retaliation.

The U.S. also plans to impose tariffs on Chinese cargo-handling equipment.

It’s all part of moves by the Trump administration to revive domestic shipbuilding, and loosen China’s grip on the wider marine sector.

The order says the national security of the U.S. is endangered by China’s “unfair trade practices in the maritime, logistics, and shipbuilding sectors”.

Reuters had first reported that such plans were in the pipeline a day earlier, based on a factsheet attached to the order.

The U.S. Trade Representative’s office last month proposed fees of up to $1.5 million for Chinese-built ships entering American ports.

That followed a probe into China’s domination of global maritime and logistics businesses.

Separately Thursday, Trump commended French shipping giant CMA CGM for saying it would invest $20 billion in the U.S.

The company says it will expand existing container ports and create 10,000 jobs.

But CMA CGM has a vessel sharing agreement with Chinese cargo line COSCO, and says that any fees on Chinese-built ships will hit every firm in the industry.

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