[Federal Register Volume 90, Number 217 (Thursday, November 13, 2025)]
[Notices]
[Pages 50947-50948]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-19873]
=======================================================================
-----------------------------------------------------------------------
OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Notice of Modification of Section 301 Action: China's Targeting
of the Maritime, Logistics, and Shipbuilding Sectors for Dominance
AGENCY: Office of the United States Trade Representative (USTR).
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: On November 1, 2025, the White House announced a historic
trade and economic deal reached between President Trump and President
Xi Jinping of China. The United States Trade Representative, at the
direction of the President, is suspending for one year, beginning on
November 10, 2025, the responsive actions taken in this investigation.
DATES: November 10, 2025: The actions taken in this investigation are
suspended, as of 12:01 a.m. Eastern Standard Time on November 10, 2025,
through 11:59 p.m. Eastern Standard Time on November 9, 2026.
FOR FURTHER INFORMATION CONTACT: Philip Butler, Chair of the Section
301 Committee; Thomas Au, Associate General Counsel; or David Salkeld,
Assistant General Counsel at (202) 395-5725.
SUPPLEMENTARY INFORMATION:
I. Background
For background on the proceedings in this investigation, please see
the prior notices issued in this investigation, including 89 FR 29424
(April 22, 2024), 90 FR 8089 (January 23, 2025), 90 FR 10843 (February
27, 2025), 90 FR 17114 (April 23, 2025) (April 23 notice), 90 FR 24856
(June 12, 2025) (June 12 notice), and 90 FR 48320 (October 16, 2025)
(October 16 notice).
On April 17, 2025, 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)), and following consideration of public comments, as well as
consultations with advisory committees and the Section 301 Committee,
the U.S. Trade Representative determined to take action in this
investigation. See April 23 notice.
On October 10, pursuant to section 307(a), and following
consideration of public comments, as well as consultations with
advisory committees and the Section 301 Committee, the U.S. Trade
Representative determined to modify the action. The modifications
included changes to certain aspects of Annexes III and IV of the April
23 notice, as well as imposition of duties on ship-to-shore cranes and
on certain cargo handling equipment of China as described in Annex V.A
of the October 16 notice. See October 16 notice.
On November 1, 2025, the White House announced a historic trade and
economic deal reached between President Trump and President Xi Jinping
of China.\1\ Pursuant to this deal, the United States would suspend for
one year, beginning on November 10, 2025, the responsive actions taken
in this investigation. The United States would negotiate with China
pursuant to Section 301 regarding the issues raised in this
investigation. While taking these actions, the United States would
continue its domestic efforts and its discussions with key allies and
partners on revitalizing American shipbuilding.
---------------------------------------------------------------------------
\1\ Fact Sheet, The White House, President Donald J. Trump
Strikes Deal on Economic and Trade Relations with China (Nov. 1,
2025), https://www.whitehouse.gov/fact-sheets/2025/11/fact-sheet-president-donald-j-trump-strikes-deal-on-economic-and-trade-relations-with-china/.
---------------------------------------------------------------------------
In accordance with Section 307(a)(2) of the Trade Act, on November
6, 2025, the U.S. Trade Representative, at the direction of the
President, proposed to suspend for one year, beginning on November 10,
2025, the responsive actions taken in this investigation. The U.S.
Trade Representative requested comments from any interested person
regarding the proposal to suspend the responsive actions. See Office of
the United States Trade Representative, Request for Comments on
Suspending Section 301 Action for One Year: China's Targeting of the
Maritime, Logistics, and Shipbuilding Sectors for Dominance (Nov. 6,
2025), https://ustr.gov/sites/default/files/files/Press/Releases/2025/301%20Ships%20FRN%20Req%20Cmts%20on%20Suspension%20FINAL.pdf (November
6 notice).
II. Determination To Modify the Action
Section 307(a)(1) of the Trade Act authorizes the Trade
Representative to modify any action being taken under Section 301,
subject to the specific direction of the President, including if such
action being taken under Section 301(b) is no longer appropriate.
In light of the trade and economic deal reached between President
Trump and President Xi Jinping of China, and at the direction of the
President, the U.S. Trade Representative has determined that the action
taken on April 17, 2025, as modified, is no longer appropriate and will
be suspended for one year. The U.S. Trade Representative's
determination to modify the actions that have been taken in this
investigation is premised upon China's commitment to negotiate
[[Page 50948]]
pursuant to Section 301 regarding the issues raised in this
investigation, the public comments received in response to the November
6 notice, the extensive public comments previously provided, advice
from the Section 301 Committee, and consultations with petitioners and
advisory committees.
Therefore, the U.S. Trade Representative is suspending the
responsive actions in this investigation from 12:01 a.m. Eastern
Standard Time on November 10, 2025, through 11:59 p.m. Eastern Standard
Time on November 9, 2026.
During the suspension period, no party will accrue liability for or
be required to pay the fees on maritime transport services under
Annexes I, II, or III of the April 23 notice, as modified by the
October 16 notice. Further, during the suspension period, no party will
accrue liability for or be required to pay the duties provided in Annex
V.A of the October 16 notice.
Accordingly, at 12:01 a.m. Eastern Standard Time on November 10,
2025, headings 9903.91.12, 9903.91.13, 9903.91.14, 9903.91.15, and
9903.91.16 of the Harmonized Tariff Schedule of the United States are
each amended by deleting ``November 9, 2025,'' and by inserting
``November 10, 2026,'' in lieu thereof.
III. Responses to Significant Comments
In response to the November 6 notice, USTR received approximately
70 unique comments. Most of these comments supported the proposal to
suspend the action. Many noted that suspension of the action would
lower shipping costs and avoid commercial disruption, provide an
opportunity for the United States to negotiate with China on the issues
raised in this investigation, and permit additional time to find
solutions to increase investment in U.S. shipbuilding. Comments
specifically addressing the suspension of restrictions of Annex IV of
the April 23 notice, as modified by the October 16 notice, generally
supported the suspension. Some comments suggested a permanent
suspension of fees on LNG ships. Comments specifically addressing the
suspension of the additional tariffs on ship-to-shore cranes and other
cargo handling equipment proposed in the October 16 notice, generally
supported suspension of all the tariffs and expressed concerns with
higher prices and harm to domestic industries.
Comments opposing the suspension asserted that the responsive
action is needed to address China's acts, policies, and practices
creating incentives to invest in U.S. shipbuilding, and that, without
the action, China's dominance in shipbuilding will only increase. USTR
also considered comments received in response to the February 23
notice, the April 23 notice, and the June 12 notice, including comments
that supported suspension of the responsive action for a period of time
and further negotiation with China regarding the subject acts,
policies, and practices.
With respect to comments suggesting a permanent suspension of fees
under Annex IV, the restrictions in Annex IV are not yet in effect, and
therefore would not be affected by the proposed suspension of Annex IV.
Considering the comments, and consistent with the President's
direction, the U.S. Trade Representative has determined to suspend this
action for one year. During the suspension, the United States will
negotiate with China pursuant to Section 301 to address the acts,
policies, and practices at issue in this investigation, as well as
continue to partner with key allies to increase U.S. shipbuilding
capacity.
Since the U.S. Trade Representative has taken action in this
investigation, the United States has entered into historic deals with
Japan and the Republic of Korea to modernize and expand the capacity of
American shipbuilding industries, including through investments in U.S.
shipyards and America's workforce. Pursuant to the terms of those
deals, Japan has committed to invest $500 billion in the United States,
and, among other things, has signed a Memorandum of Cooperation with
the United States to expand shipbuilding capacity in both nations by
aligning investment, procurement, workforce, and technology
initiatives.\2\ Similarly, the Republic of Korea has committed to
invest $150 billion in shipbuilding in the United States,\3\ and
several Korean companies will partner with U.S. companies to modernize
American shipyards and support new construction of U.S.-flagged
vessels.
---------------------------------------------------------------------------
\2\ Fact Sheet, The White House: President Donald J. Trump
Drives Forward Billions in Investments from Japan (Oct. 28, 2025),
https://www.whitehouse.gov/fact-sheets/2025/10/28195/.
\3\ Fact Sheet, The White House: President Donald J. Trump
Brings Home More Billion Dollar Deals During State Visit to the
Republic of Korea (Oct. 29, 2025), https://www.whitehouse.gov/fact-sheets/2025/10/fact-sheet-president-donald-j-trump-brings-home-more-billion-dollar-deals-during-state-visit-to-the-republic-of-korea/.
---------------------------------------------------------------------------
IV. Proposed Modifications in the October 16 Notice
For additional clarification, USTR will continue to accept comments
regarding the modifications proposed in the October 16 notice, docket
number USTR-2025-0017, through November 12, 2025.
V. Ongoing Monitoring
The U.S. Trade Representative will continue to monitor the issues
raised in this investigation pursuant to Section 301 of the Trade Act
and will consider whether it is appropriate to continue the suspension
period or whether further action is appropriate in advance of the
November 10, 2026 suspension deadline. If modification to the action
may be appropriate pursuant to Section 307 of the Trade Act, the U.S.
Trade Representative may consider the comments received in response to
previously proposed responsive actions.
Jennifer Thornton,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2025-19873 Filed 11-12-25; 8:45 am]
BILLING CODE 3390-F4-P