Congresswoman Stacey E. Plaskett shared the following update regarding President Trump’s executive order on the maritime industry:
“This week, President Trump announced an executive order which doubles down on previous tariff directives and provides a structure to move ahead with the administration’s Section 301 tariff actions which will impose significant port fees on maritime transport operators with fleets comprised of Chinese-built vessels. If the order comes into full effect, it will result in significant port fees on maritime transport operators servicing the United States Virgin Islands. The order also directs the U.S. Trade Representative to consider imposing fees on Chinese-built cranes and other cargo-handling equipment, an action which could affect almost every port in America.
“These actions will cause increased shipping costs, shipping delays and, in some cases, the wholesale termination of service by cargo carriers to impacted locations throughout the coast of the United States and especially places like the Virgin Islands.
“I am particularly concerned for coastal and island communities, including the Virgin Islands, where the imposition of these punitive measures will skyrocket costs of food and other everyday items that must be imported by the maritime industry.
“My team and I have been highly engaged with the Virgin Islands maritime industry, as well as stakeholders including meeting with the ambassadors to the Caribbean nations, to track the implications of President Trump’s
executive order on ship owners, operators, and builders.
“Earlier this week, I had the opportunity to question US Trade Relations Ambassador Jameison Greer during a Ways & Means Committee hearing and urged the ambassador to consider the practical impacts of tariff actions on the US outlying areas and ultimately reconsider these actions. Our communities would bear tremendous undue cost, which makes clear the need for an exemption. I am also leading a letter to USTR Ambassador Greer and the Administration to make the case for this exemption and underscore the impact of these fees on the Virgin Islands which will permeate through the Caribbean region.
“Under the order, transport operators with fleets comprised of Chinesebuilt vessels will be charged up to $1.5 million per vessel entrance to an American port, as well as an ‘additional fee’ of up to $1 million per vessel entrance to an American port if the number of foreign-built vessels in the operator’s fleet is equal to or greater than 25 percent. Even vessels under the U.S. flag, operated and owned by a U.S. entity that are Chinese-built would be subject to the fees in USTR’s proposal. We continue to urge the Trump Administration to heed the feedback of elected officials, the maritime industry, and stakeholders even amidst the imposition of these actions that will have radically negative consequences for our corner of the American experience.
“I will continue to collaborate in a bipartisan manner with my colleagues, stakeholders, and the Virgin Islands community to advance the interests of the Virgin Islands.”
