FX.co ★ Trump escalates trade war with new tariffs on Chinese shipping

A new phase of the trade conflict seems to be gaining momentum in the market. According to The New York Times, tariffs imposed by US President Donald Trump on Chinese-owned chips could become the new front in the trade war.

President Trump has added fuel to the global trade conflict by proposing tariffs of up to $1.5 million on Chinese-made ships arriving at US ports.

These tariffs could also apply to vessels built in other countries if they are operated by carriers whose fleets include Chinese ships. This would lead to higher costs for many imported goods, from raw materials to factory products. However, experts point out that such a policy contradicts Trump's promises to combat inflation.

According to Gavekal Research, nearly 80% of US foreign trade is transported by ship. Yet, less than 2% of cargo is shipped under the American flag. Dutch banking giant ING notes that one-fifth of container vessels arriving at US ports are manufactured in China.

Under the new rules, 15% of US exports would have to be shipped on US-flagged vessels within seven years. Furthermore, 5% of the fleet would have to be built in the United States. However, Lars Jensen, CEO of Vespucci Maritime, a container shipping consultancy, says these plans are not feasible. According to him, their implementation would scramble international transportation and create additional uncertainty for businesses already grappling with the effects of Trump's tariff policy.

As previously reported, most economists consider the American president's economic strategy a failure. Predictions are now emerging that China will shift its focus to trade with the rest of the world, while the competitiveness of US exports will collapse. In addition, the dollar will rise, making it more difficult for American exporters to sell their goods.