The American Association of Port Authorities (AAPA) has applauded the exemption granted in the United States Trade Representative's (USTR) decision to finalize a 25% tariff on ship-to-shore cranes.
The final determination excludes cranes manufactured in China that were ordered prior to the tariff announcement on May 14, 2024 and are delivered before May 14, 2026. AAPA says without the exemption, port authorities with outstanding orders would have been arbitrarily punished.
“Our industry sincerely thanks the Biden Administration for listening to the concerns of America’s ports by making a targeted exclusion to the tariff on Chinese manufactured ship-to-shore cranes," said Cary S. Davis, AAPA President and CEO.
"This wise decision will prevent more than $130 million in unexpected costs for these public ports with tight budgets. With the medium and long-term health of our economy and supply chains in mind, we are hopeful that the White House will redouble its efforts to, with the help of Congress, create incentives to build out a market for US manufacturing of this key port equipment so we can continue modernizing and upgrading our ports.
Until ship-to-shore cranes are available from American manufacturers, the Administration should suspend the proposed tariffs on cranes to prevent further harm to our ports and supply chains.”
For cranes ordered after May 14, 2024, and for all deliveries going forward, the 25% tariff will come into effect on September 27, 2024.
The AAPA says that the port industry desperately needs government leaders to boldly step up and champion legislation to incentivize the domestic manufacture of ship-to-shore cranes so ports have the option to purchase from American suppliers. “We stand ready to support and assist in these efforts. Until there is an American manufacturer, USTR should not impose tariffs on cranes that do nothing more than tax port development.”