US reconsidering fines on Chinese-made cargo ships supplying Caribbean; US Congresswoman lobbies for region after meetings with regional representatives

Last Updated on Tuesday, 15 April 2025, 20:54 by Writer

United States (US) Trade Representative Jamieson Greer has told the US Congress House Ways and Means Committee that the Donald Trump administration could reconsider the hefty US$1.5 million fine on Chinese-made vessels that transport food and other supplies to the Caribbean, after listening to a stirring appeal by US Congresswoman for the US Virgin Islands, Stacey Plaskett.

“We’re not going to make 25 ships on April 18, the day after we put in any kind of measure so I certainly think that there has to be accommodation made for circumstances, because we’re not going to have all the ships in on April 18,” he said.

Mr Greer, in his opening presentation said during World War Two, the US built nearly 9,000 ships but last year built only three ocean going vessels.

Ms Plaskett also made representation on behalf of the wider Caribbean during last week’s hearing on Mr Trump’s trade policy by the House Ways and Means Committee.

She said most of the US-made smaller vessels that are in Caribbean waters are for the military rather than cargo. It’s cost effective for them to do it for the military, but not for those kinds of cargo shipping that’s done in the Caribbean region. It doesn’t provide a balance for us, and we are concerned, not only in the Virgin Islands, but Puerto Rico as well as the other Caribbean islands, that this imposition of a million dollars per port that is being proposed will bear incredible impact on us,” she said.

Congresswoman Plaskett said the US shipping industry that is serving the Caribbean could not absorb additional costs of the proposed port fees. She warned that if the US goes ahead with those fines, it would have a “significant economic consequence to us”.

In her presentation, supported by a large bill board, she said the Caribbean, America’s fourth largest trading partner, accounts for US$92 billion in US exports.

Ms Plaskett warned that the fines could backfire on the US by forcing Caribbean nations to have closer relations with China which already has a foothold in Latin America and the Caribbean.

“The other concern is, one that has been mentioned by my colleagues as well, is national security. We cannot have Caribbean nations moving closer to China, who is already on the shores of these Caribbean nations, to try and do increase trade with them, if we are having a trade war with China,” she said.

She recommended to the US Trade Representative that special consideration be given to American-owned Chinese-built ships that ply the Caribbean. “Many of these shipbuilders are, in fact, American owned. They’re American shipping vessels that are American owned, they are just Chinese made, if there hasn’t been discussion about having some exemption for American owned, American vessels that are coming out of Florida going into the Caribbean,” she said.

Ms Plaskett indicated that she was gravely concerned that the proposed US$1 million fines on Chinese-built vessels would be passed on to the United States Virgin Islands and Puerto Rico. She also said the cost of rebuilding, already negotiated with the US Federal Emergency Management Agency (FEMA), would “skyrocket”.

The Caribbean Private Sector Organisation (CPSO), which is an associate of the inter-governmental Caribbean Community (CARICOM), on Monday said it was “encouraged by the submission” of Congresswoman Plaskett to the US Ways and Means Committee, on April 11th, 2025, which highlighted the concerns of the Caribbean.

The regional private sector organisation said her submission followed her engagement with the Atlantic Council, Tropical Shipping, and the CPSO on March 25th, 2025.

The CPSO also said The Atlantic Council, Tropical Shipping, and the CPSO met with CARICOM Ambassadors to discuss the possible implications of the USTR Section 301 proposed remedies for Chinese maritime, logistics, and shipbuilding practices and particularly, the potential impact on Caribbean economies. “The discussion also covered the potential impact of the proposed measures on key sectors such as agriculture, manufacturing, energy, tourism, and cruise lines,” that organisation added.

Ms Plaskett’s testimony followed meetings with the Virgin Islands maritime industry, as well as stakeholders, including meeting with the ambassadors to the Caribbean nations, to track the implications of President Trump’s executive order on shipowners, operators and builders.

The CPSO said the Congresswoman also committed to continuing to collaborate in a bipartisan manner with colleagues, stakeholders, and the Virgin Islands community to advance the interests of the Virgin Islands. “The CPSO is encouraged by this positive response and representation, as the organisation continues to advocate together with its partners, on behalf of the CARICOM economies and people,” the organisation said.

Former Committee Chairman and current member, Democrat Richard Neal told the hearing that tariffs would spike prices for American families, kill US exports and drive away US allies.