USTR Proposes 2-Month Extension of Suspension of Section 301 Maritime Actions Against China
Comments Due October 30, 2026
Highlights
- The Office of the U.S. Trade Representative (USTR) has proposed to further suspend the responsive actions taken in the Section 301 investigation of China's targeting of the maritime, logistics and shipbuilding sectors for dominance to allow for further negotiation with China.
- The current one-year suspension is scheduled to expire at 11:59 p.m. ET on November 9, 2026, and, absent further action, the port fees on maritime transport services and related duties would otherwise resume.
- Written comments are due by 5 p.m. ET on October 30, 2026, via USTR's electronic portal under docket number USTR-2026-0694 – a window of less than one week.
The Office of the U.S. Trade Representative (USTR) has proposed to further suspend, for two months through January 9, 2027, the responsive actions taken in the Section 301 investigation of China's targeting of the maritime, logistics and shipbuilding sectors for dominance to allow for further negotiation with China. The current one-year suspension, implemented under the November 2025 U.S.-China trade and economic deal, is scheduled to expire at 11:59 p.m. ET on November 9, 2026. Absent further action, the port fees on maritime transport services and related duties would otherwise resume.
Background
The USTR initiated its Section 301 investigation into China's acts, policies and practices targeting the maritime, logistics and shipbuilding sectors in April 2024. On April 17, 2025, following public comment and consultations with advisory committees and the Section 301 Committee, the USTR determined to take action pursuant to Sections 301(b), 301(c) and 304(a) of the Trade Act of 1974, as amended (19 U.S.C. 2411(b), 2411(c) and 2414(a)). That action, published on April 23, 2025, and modified on October 16, 2025, imposed fees on maritime transport services (Annexes I, II and III) and duties under Annex V.A of the October 16, 2025, notice.
On November 1, 2025, the White House announced a trade and economic deal between President Donald Trump and President Xi Jinping under which the U.S. would suspend the Section 301 maritime actions for one year beginning November 10, 2025. The suspension was intended to allow negotiations with China on the issues raised in the investigation and continue U.S. domestic efforts and discussions with allies and partners on revitalizing American shipbuilding. Following public comment, USTR suspended the actions from 12:01 a.m. ET on November 10, 2025, through 11:59 p.m. ET on November 9, 2026.
The Proposed Further Suspension
In a notice scheduled for publication in the Federal Register on October 26, 2026, USTR states that the U.S. is continuing to engage with China with the goal of eliminating the acts, policies and practices at issue. USTR therefore proposes to suspend the responsive actions from 12 a.m. ET on November 10, 2026, through 11:59 p.m. ET on January 9, 2027.
During the proposed suspension period, no party would accrue liability for or be required to pay the fees on maritime transport services under Annexes I, II or III of the April 23, 2025, notice, as modified by the October 16, 2025, notice. Likewise, no party would accrue liability for or be required to pay the duties provided in Annex V.A of the October 16, 2025, notice.
Notably, the proposed extension is only two months – substantially shorter than the original one-year suspension. Stakeholders should be prepared for the possibility that the fees and duties could resume after January 9, 2027, depending on the status of U.S.-China negotiations.
Takeaways and Next Steps
Written comments are due by 5 p.m. ET on October 30, 2026, via USTR's electronic portal under docket number USTR-2026-0694 – a window of less than one week. Vessel owners and operators, carriers, shippers, importers, port and logistics stakeholders, and U.S. shipbuilding interests should evaluate whether to weigh in on the proposed extension and its duration, as well as plan for an extended suspension and a potential reinstatement of fees and duties in early 2027. Given the short comment window, interested parties should act promptly.
Holland & Knight's USTR Fees Task Force attorneys are monitoring developments in this Section 301 proceeding and can assist with preparing comments, protecting confidential information and assessing the operational impact of the fees and duties. For more information, please contact the authors.
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