At FGN Global Logistics, a strong understanding of trade policies is vital for our operations. A key player in this arena is the Office of the United States Trade Representative (USTR). In this month’s blog post, we will explore what the USTR is, its role, and recent actions that could shape supply chain logistics.

What the USTR Is

The USTR is a federal agency tasked with shaping U.S. international trade policy. Led by the U.S. Trade Representative, a Cabinet-level official, the USTR negotiates trade agreements, resolves disputes, and promotes fair trade practices to support American industries, workers, and consumers. With over 200 trade experts, the USTR works to open global markets and ensure sectors like bulk liquid logistics remain competitive.

For our industry, the USTR’s policies influence shipping costs, supply chain resilience, and market access. From trade agreements to addressing foreign practices, the USTR’s decisions directly affect how we transport and deliver bulk liquids, such as chemicals, fuels, or food-grade products.

Why the USTR Matters to Bulk Liquid Logistics

International logistics depends on efficient maritime and port operations to move goods across borders. The USTR plays a critical role by addressing trade barriers and unfair practices. For instance, agreements like the United States-Mexico-Canada Agreement (USMCA) streamline cross-border trade for liquid commodities, ensuring smoother operations.

The USTR’s focus on supply chain resilience is also significant. In January 2025, the USTR released policy papers outlining strategies to strengthen supply chains for industries like ours. These strategies include enforcing rules of origin and countering non-market practices, which help ensure stable access to critical materials and markets. For bulk liquid logistics, this translates to greater predictability in sourcing and shipping.

Recent USTR Actions: The China Section 301 Investigation

One of the USTR’s most notable recent moves is its Section 301 investigation into China’s dominance in the maritime, logistics, and shipbuilding sectors. Launched on March 2024 following a petition from five U.S. labor unions, the investigation concluded that China’s state-led practices—such as subsidies and preferential treatment for its shipbuilders—displace foreign firms, reduce competition, and create global dependencies.

On April 17, 2025, the USTR announced its final action plan after a year-long investigation and public consultations, including hearings on March 24 and 26, 2025. The measures include:

• Targeted Fee Structure: A scaled-back, voyage-based fee on Chinese vessels and operators, assessed on net tonnage at the first U.S. port of entry per rotation, with a cap of five fees per year per vessel. Additional capacity fees apply to foreign-built car carriers, but previously proposed flat fees of $1 million to $1.5 million per port entry were dropped.
• Exemptions and Incentives: Exemptions cover U.S.-owned vessels, smaller vessels, ships in ballast, short-sea shipping, and specialized export vessels, aiming to incentivize U.S. shipbuilding without major trade disruptions.
• LNG Sector Requirements: Starting April 17, 2028, a portion of U.S. LNG exports must use U.S.-built vessels, phasing in over 22 years to support domestic shipbuilding while allowing industry adjustment.
• Proposed Tariffs: Tariffs on Chinese cranes and cargo gear were proposed to address supply chain dependencies.

What This Means for Your Operations

For those in bulk liquid logistics, these USTR actions signal potential shifts in costs and operations. Here are a few steps to stay prepared:

• Review Contracts: Examine shipping contracts for clauses related to port fees or tariffs to clarify cost responsibilities.
• Monitor Costs: Anticipate potential increases in shipping expenses and explore cost-saving options.
• Engage with Experts: Consult with logistics providers such as FGN to assess how U.S.-flag vessel requirements could affect your supply chain.

The USTR’s actions underscore the dynamic nature of global trade and its impact on bulk liquid logistics. By staying informed and proactive, we can navigate these changes and maintain efficient, cost-effective operations. Interested in how this may impact your operations? Reach out to FGN’s team to discuss your shipping needs – we can help create a cost effective plan for your shipments.