China paused its retaliatory port fees on ships linked to the United States for one year, starting Monday, after the Trump administration did the same for Chinese ships, suggesting trade tensions are easing.
The move comes as President Donald Trump lowered his fentanyl-related tariffs on China, effective Monday, following successful trade talks between the world’s two largest economies. The 10% baseline tariff will remain in effect during the one-year suspension period.
Beijing announced the change to port fees after the U.S. Trade Representative paused its Section 301 investigation, which found the foreign power’s dominance of the maritime, logistics, and shipbuilding sectors to be unreasonable. The inquiry had been shelved until Nov. 9, 2026, along with the port fee suspensions in both countries.
However, USTR noted it will continue to monitor the issues raised in the investigation and left open the possibility for the investigation to be reopened before November 2026 if deemed necessary.
Beijing also suspended its sanctions on five U.S. subsidiaries of South Korean shipbuilder Hanwha Ocean, which was accused of cooperating with the Section 301 investigation.
The latest actions are a direct result of Trump’s bilateral meeting with Chinese President Xi Jinping in South Korea late last month. Trade tensions were previously at an all-time high in October when China imposed export controls on rare earth minerals.
China walked back those restrictions and added 13 fentanyl precursors to a list of controlled exports to the U.S., Mexico, and Canada. Fentanyl trafficking across U.S. borders was one of the primary reasons why Trump instituted the tariffs on Chinese goods in the first place.
Furthermore, China is keeping its tariffs on U.S. goods at 10% and opening its market to U.S.-grown soybeans and other agricultural exports.
EU MUST BACK US FOR CHINA TRADE DEAL TO HOLD, EXPERTS WARN
It remains to be seen whether the reduction in hostility between the U.S. and China will hold. Trump remains confident it will hold while standing by his ambitious tariff agenda, which has been criticized by lawmakers.
The Supreme Court is currently considering whether Trump has the authority to justify his tariffs under the International Emergency Economic Powers Act. Trump maintains that the tariff measures are necessary for preserving national security against foreign powers, including China.