Financial time you have Artico discusses the proposed tax on Chinese ships using US ports.
According to Kpler data, in 2024, US bulk fertilizer imports – 6.7mn metric tons were carried by a dry bulk carrier built in China, about 46%. A $1.5 million fee could increase transportation costs by $62.50 per tonne. Phosphate and nitrogen fertilizers, essential for US crop production, are the hardest hit. . . .
The proposal comes from a month-long investigation by US trade officials launched by the Biden administration, on ways to counter China’s maritime control. The survey came in regards to competition from union leaders on China’s industrial subsidies. Japan and South Korea are also major builders, with American seafarers slowly and widely considering the expensive ones.
Why can’t US farmers export this extra cost to foreign consumers? The problem they face is that taxes don’t apply to competitors. Global demand for agricultural products may be resilient, but certain demands for us are much more resilient, as there are many other suppliers in the importing countries.
Co-consultant Jay O’Neill said the proposed fees would “scarce one from me,” adding that it would “help the expansion of crop production on our foreign competitive land.”
