The port levies both countries introduced earlier this month against Chinese and American ships have been suspended until further notice. This is the immediate result of the negotiations between US President Donald Trump and his Chinese counterpart Xi Jinping, at the meeting in Busan to avoid the risk of a new escalation in the trade war between the two economies.
The meeting led to the US’ commitment to cut tariffs on Chinese imports in exchange for Beijing’s willingness to purchase US soybeans and continue exports of rare earth elements. No joint declarations were issued.
Following the agreement, the Chinese Ministry of Commerce stated that Beijing will suspend the implementation of special levies on US ships for one year, in return for the US agreeing to do the same with the port taxes on Chinese ships berthing in American ports from 14th October .
Naturally, the United States has not set aside its main objective to rebuild the American shipbuilding industry. However, through its trade representative, Jamieson Greer, it has stated that it will address the issue through dialogue.
Let’s hope that the thaw in Busan will last long enough to improve the climate in the shipping sector. It has been heavily impacted by the ongoing trade war between the two countries, to the extent that some of Hong Kong’s shipowners, Pacific Basin and Seaspan, have transfered their headquarters to Singapore in order to avoid US levies .
Translation by Giles Foster
