USTR Eases Fees on Foreign-Built LNG and Car Carrier Ships to Support U.S. Trade

The U.S. Trade Representative (USTR) has revised its fee policy on non-U.S.-built LNG tankers and car carriers, softening measures originally aimed at countering China's maritime influence and reviving the domestic shipbuilding industry.

The updated proposal, announced Friday, eliminates penalties for LNG exporters failing to use U.S.-built ships and lowers port fees for foreign-built car carriers. Vessels serving the U.S. military and those in the Maritime Security Program (MSP) are now exempt. This move comes after industry backlash to USTR’s April announcement requiring LNG exporters to transport 1% of shipments on U.S.-built vessels by 2029, rising to 15% by 2047.

The revised car carrier fee drops significantly—from $150 per vehicle capacity to $14 per net ton. The changes follow strong criticism from both the LNG and vehicle shipping sectors, who said the initial rules blindsided them. The American Petroleum Institute welcomed the revisions, calling them “a step in the right direction” for ensuring U.S. LNG remains competitive globally.

USTR had previously exempted ships carrying U.S. exports and those serving the Great Lakes, Caribbean, and U.S. territories. Now, exemptions have been extended to U.S.-flagged, U.S.-crewed RoRo ships under the MSP, including operators like American Roll-On Roll-Off Carrier Group.

These port fees, originally targeting China-linked vessels, had also impacted ships from other countries not involved in the USTR’s fast-track probe of Chinese maritime dominance. Stakeholders, who were previously denied a chance to comment, have until July 7 to provide feedback on the revisions.

The new rules continue to reference “non-U.S.-built” ships, highlighting ongoing efforts to steer more trade toward U.S. maritime assets without disrupting critical supply chains.