NAWE highlights tariff concerns for critical port equipment

The National Association of Waterfront Employers (NAWE) sent a letter to United States Trade Representative (USTR) Ambassador Jamieson Greer and National Security Advisor Marco Rubio, highlighting supply chain concerns regarding tariff proposals on critical port equipment and requesting clarification from the Administration for an exemption process on pre-ordered Ship-to-Shore (STS) cranes and cargo handling equipment (CHE). This request specifically applies to Chinese manufactured equipment contracted prior to December 31, 2024.

NAWE represents marine terminal and port operating industries that handle over 90% of the nation's containerized trade. The association supports the Administration's efforts to revitalize the U.S. shipbuilding industry and strengthen the maritime workforce, as outlined in President Trump's executive order, "Restoring America's Maritime Dominance."

However, in its letter NAWE highlighted the significant financial implications of potential tariffs on previously ordered Chinese-manufactured STS cranes and CHE, noting that these purchases are multi-year endeavors costing millions of dollars. “The potential accumulation of maximum tariff penalties on Chinese STS/CHE orders has put NAWE member companies in a difficult position – forcing them to consider whether and when to bring cranes into the. U.S. market, or whether to default, re-sell, or redeploy the equipment elsewhere,” the letter states.

A timely exemption process would provide certainty for the maritime industry and help avoid potential supply chain disruptions. The letter urges the Administration not to penalize American public ports and marine terminal operators (MTOs) for purchasing STS cranes under previous trade policy, long before the new tariffs were proposed.

NAWE is proposing several recommendations, which were also highlighted by NAWE President Carl Bentzel during his testimony before the USTR regarding Chinese influence in the maritime, logistics, and shipbuilding sectors:

Exemption from previously contracted equipment: MTOs who contracted for and initiated fabrication of Chinese-built STS/CHE equipment before December 31, 2024, should be exempted from USTR tariff penalties.

Three-year transition period: A three-year transition period should be implemented before the application of the proposed USTR penalty, allowing the industry to adapt to purchasing non-Chinese STS/CHE, as the current market for non-Chinese equipment is incapable of addressing the potential need.

Establish a Maritime Trust Fund: Consistent with President Trump’s executive order, a mandatory Maritime Trust Fund, funded in part by USTR tariff penalties, should be established to enable the development of a domestic STS/CHE manufacturing base.

Exemption for spare and replacement parts: Spare and replacement parts should also be exempted from USTR penalties, given that contracts for STS/CHE often require specific repair and upkeep utilizing the original manufacturer.

NAWE is committed to modernizing U.S. terminal facilities and looks forward to continuing to work with the Administration to strengthen the U.S. maritime industrial base.