**Trade War Escalation: New Port Fees Ignite US-China Tensions**

Trade tensions between the US and China have intensified as both countries implement new port fees on each other’s shipping vessels. Starting Tuesday, these fees are aimed at countering perceived unfair trade practices, with China claiming that its measures are necessary to protect its shipping industry from discriminatory actions by the US, particularly impacting American-owned vessels.

In retaliation, the US imposed new tariffs on imported goods such as timber, kitchen cabinets, and upholstered furniture, primarily sourced from China. The move comes amidst a backdrop of escalating threats, including a potential 100% tariff proposed by US President Donald Trump against China.

Despite these tensions, US Treasury Secretary Scott Bessent indicated that ongoing communication suggests a willingness to negotiate, with a meeting planned between Trump and Chinese President Xi Jinping in late October. However, a Chinese commerce ministry spokesperson emphasized that negotiations cannot coincide with new US restrictions, reiterating China’s dedication to defending its positions.

On the practical side, the port fees imposed by China amount to 400 yuan (around $56) per net tonne for US-linked ships, with this cost set to increase annually, potentially impacting freight operations significantly. Analysts project that major vessels could incur fees exceeding $10 million by April 2028, which would add substantial costs to the shipping industry.

Further complicating matters, Beijing has placed five subsidiaries of the South Korean shipbuilder Hanwha Ocean on its sanctions list, marking a significant step in diplomatic tensions. These latest developments reflect a departure from previous agreements made earlier this year when both powers had tentatively agreed to ease tariff threats, illustrating the fragility of US-China trade relations.