Assessing the Potential Costs to Agricultural Exporters of Section 301 Annex 1 and 2 Fees

Jiyeon Kim, Matthew Gammans, Shawn Arita and Sandro Steinbach

No 358893, Agricultural Risk Policy Center from North Dakota State University

Abstract: On April 17, 2025, the Office of the United States Trade Representative (USTR) finalized a Section 301 action targeting China’s dominance in shipbuilding and maritime logistics by imposing new port fees on Chinese-operated (Annex 1) and Chinese-built (Annex 2) vessels arriving at U.S. ports. This white paper evaluates the implications of these fees for U.S. agricultural exports, using 2024 data on port calls and vessel characteristics. We simulate the counterfactual costs that would have been incurred under the final policy, finding that, absent shifts in routing or vessel choice, annual shipping costs could initially rise by $2.3 billion and escalate to $6.2 billion by 2028. For major commodities such as corn, wheat, and soybeans, the added fees translate to an estimated 5 to 7 cents per bushel.

Keywords: Agricultural and Food Policy; International Relations/Trade; Risk and Uncertainty; Supply Chain (search for similar items in EconPapers)
Pages: 12
Date: 2025-06-23
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ndsuag:358893

DOI: 10.22004/ag.econ.358893

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