The Office of the United States Trade Representative (USTR) has issued a final determination exempting the US Virgin Islands from proposed federal maritime fees that would have significantly raised shipping costs for Chinese-built vessels operating in American ports. The exemption comes after a Section 301 investigation into trade practices and follows sustained advocacy from territorial leaders and congressional representatives.
The proposed policy would have imposed punitive service fees of up to $1.5 million per vessel entrance, and an additional $1 million fee for shipping companies with fleets containing more than 25% foreign-built vessels, even if they were US-flagged and US-owned. The result would have been drastic increases in shipping costs, with some estimates projecting a 50–60% spike for the US Virgin Islands. Local officials also warned of serious delays and long-term disruption in the flow of essential goods, 95% of which are imported into the territory.
The exemption was granted under the USTR’s “Notice of Action” (Annex II, page 33), which provides carve-outs for vessels under specific size thresholds and for ships traveling fewer than 2,000 nautical miles to a US port. These stipulations directly apply to many of the smaller, shallow draft ships that service the US Virgin Islands.
Delegate Stacey Plaskett (D), who serves on the House Ways & Means Committee, played a key role in the exemption effort. She raised the issue with US Trade Representative Ambassador Jamieson Greer during a recent committee hearing and led a congressional letter urging the administration to consider the disproportionate impact of the proposed fees on US territories. Her coalition included representatives from both Atlantic and Pacific outlying areas.
In addition to protecting local supply chains, the exemption also prevents unintended geopolitical consequences. Plaskett warned that the policy, if implemented, could have driven an increased presence of Chinese carriers in the Caribbean Basin, undermining US strategic interests in its so-called “third border.”
According to the USTR, the final exemptions apply to:
- US-owned or flagged vessels enrolled in federal maritime security programs
- Empty or ballast vessels
- Ships with a capacity of 4,000 TEU or less
- Vessels arriving from foreign ports less than 2,000 nautical miles away
- Specialized tankers and chemical transport vessels
- Lakers vessels operating under CBP Form 1300
The outcome reflects sustained coordination among territorial officials, members of Congress, and maritime industry stakeholders, including Tropical Shipping. Federal authorities said the decision represents a balanced enforcement approach that respects national trade priorities while accounting for the unique realities of US territories.
“This outcome is the result of strong leadership, strategic engagement, and sustained collaboration,” Governor Albert Bryan Jr. (D) said. “I want to personally thank President Donald Trump, Ambassador Jamieson Greer, and the entire team at the USTR for hearing our case and recognizing the unique supply chain vulnerabilities faced by the Virgin Islands.”
The exemption preserves logistical stability in the US Virgin Islands and affirms the importance of tailored federal policy for insular areas. Local leaders said the territory would continue advocating for inclusive policymaking that recognizes its geographic and economic challenges.
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