The Trump administration has proposed a port usage fee on Chinese built and operated ships calling on the U.S. If the proposals are implemented, it could impact costs for U.S. shippers and the global supply chain.

The proposal, published by the United States Trade Representative (USTR) in the Federal Register, suggests imposing fees of up to $1.5 million per U.S. port call for ships built in China, and $500,000 for any vessel operator that has even one Chinese-built ship in its fleet, or has an order with a Chinese shipyard.

This comes after the USTR found that “China’s targeting for dominance unreasonable because it displaces foreign firms, deprives market-oriented businesses and their workers of commercial opportunities, and lessens competition and creates dependencies on China, increasing risk and reducing supply chain resilience,” per the USTR press release.

The USTR is seeking public comment on these proposed actions. The public comment period is open until March 24^th, the same day the USTR will hold a public hearing on the issue.