Retailers Submit Comments Opposing USTR Shipping Proposal

Washington, DC
03/24/2025

New Study Finds U.S. Businesses and Consumers Will Bear Increased Costs for USTR Shipping Proposal

The National Retail Federation and the Retail Industry Leaders Association submitted joint comments on Monday regarding proposed action in the Section 301 Investigation of China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance.

Together, the two organizations, along with over thirty other organizations representing a variety of industry sectors, commissioned a study by Trade Partnership Worldwide, LLC to examine the potential ramifications of the actions USTR has proposed. The study found that the proposed actions would have far reaching negative effects on the prices of imports and exports.

“Imports and exports decline as a result of the higher costs of the fees, and/or the mandate to use more expensive U.S.-built, U.S.-owned and U.S.-operated ships. While the potential negative impacts on U.S. agriculture are ‘headline-grabbing,’ those negative impacts extend as well to other sectors of the American economy, including retail. As higher costs filter through the economy, the wholesale and retail trade sectors, from stores to restaurants, see declines in sales and employment,” the study concluded.

In a joint submission to USTR, the two organizations wrote: “As a result, U.S. businesses and consumers will take the brunt of these service charges and be forced to bear increased costs for a wide array of commodities with little to no alternatives as many, if not all, of the leading ocean carriers capable of meeting U.S. shipping needs use Chinese-built vessels in their fleets.”

The joint letter outlined the concerns of retailers about the port service fee being passed along to cargo owners at a significant cost. The concerns also include carriers changing their rotations to avoid the fees by cutting out smaller ports and overwhelming larger ports, causing congestion and other supply chain challenges.

One retailer described the possible ramifications: “We are concerned that the trifecta of China and reciprocal tariffs; the new Aluminum/Steel derivative tariffs; and the China-ship fee will put extraordinary pressure on U.S. retailers. (One notable example would be cast aluminum outdoor furniture.) In some sectors that are already struggling under the current economic and housing market conditions, such as furniture and home improvements, the proposed fees could nearly double the cost to import these items.”

“We encourage the administration to continue to investigate the barriers and limitations on U.S. shipbuilding and to seek other means to help revitalize the industry, without burdening those who rely upon it,” said David French, NRF’s executive vice president of government relations.

“The goal of revitalizing the American shipbuilding industry is laudable, however, these new fees will have ripple effects across the U.S. economy. If enacted, these policies will disrupt the flow of commerce, add regulatory burdens, and increase costs on American manufacturers and consumers. RILA looks forward to collaborating with the administration on ways to revitalize the U.S. shipping industry while minimizing disruptions to competitiveness, businesses and consumers,” said Michael Hanson, RILA’s senior executive vice president, public affairs.

Read the full study here.

Read the full letter from NRF and RILA here.

About NRF
The National Retail Federation passionately advocates for the people, brands, policies and ideas that help retail succeed. From its headquarters in Washington, D.C., NRF empowers the industry that powers the economy. Retail is the nation’s largest private-sector employer, contributing $5.3 trillion to annual GDP and supporting more than one in four U.S. jobs — 55 million working Americans. For over a century, NRF has been a voice for every retailer and every retail job, educating, inspiring and communicating the powerful impact retail has on local communities and global economies. nrf.com

About RILA
RILA is the U.S. trade association for leading retailers. We convene decision-makers, advocate for the industry, and promote operational excellence and innovation. Our aim is to elevate a dynamic industry by transforming the environment in which retailers operate.

RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $2.7 trillion in annual sales, millions of American jobs, and hundreds of thousands of stores, manufacturing facilities, and distribution centers domestically and abroad.

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