FOR IMMEDIATE RELEASE
MARCH 10, 2025 – The Seafarers’ International Union of Canada (SIU Canada) is calling on U.S. policymakers to reconsider parts of a recent petition to the United States Trade Representative (USTR) that would see a $1.5 million duty imposed on vessels built in China that enter U.S. ports. The proposal, aimed at bolstering the American shipbuilding industry, could have far-reaching and devastating consequences for Canadian shipping companies and Canadian workers.
While the originating petitioners filed a Section 301 petition to the USTR office for the purpose of protecting the American maritime, logistics, and shipbuilding sector, the Union believes this would reach far beyond its intended goal as the proposed tax does not target Chinese-flagged ships but rather any vessel, regardless of its registry, that was originally constructed in China. Given that a considerable number of Canadian-flagged ships were built in China, this measure would have a devastating impact on Canadian marine shipping. The financial burden of a $1.5 million fee per port entry would quickly add up, severely restricting Canadian trade with the U.S., and ultimately damaging American supply chains and consumers who rely on these imports.
The SIU Canada acknowledges the importance of strengthening domestic shipbuilding in the U.S., an industry that Canada should equally seek to expand, however the Union argues that imposing excessive fees on existing vessels is a short-sighted and harmful approach. Encouraging investment in North American shipyards is important, however this policy will unjustly punish Canadian companies that previously relied on years of government programs that were designed to incentivize importing foreign-built vessels. If policymakers in the U.S. do not consider amendments to the petition, the SIU Canada believes this will end up leading to higher costs for industries that depend on marine transportation.
As the U.S. and Canada navigate a period of rising inflation and increasing trade tensions—including the continued threat of reciprocal 25% tariffs—this additional tax would only exacerbate economic challenges. The SIU Canada warns that these combined measures will drive up costs for businesses and consumers on both sides of the border.
“Workers in both Canada and the U.S. will feel the effects of this decision. Whether it’s the increased price of goods or the impact on jobs within the marine sector, the consequences will be significant,” stated Michael Given, President of the SIU Canada. “Rather than introducing punitive measures that disrupt trade, we urge the U.S. government to engage in meaningful dialogue with industry stakeholders to find solutions that support North American shipbuilding without jeopardizing economic stability.”
The SIU Canada calls for urgent discussions between Canadian and American policymakers to seek out exemptions to certain measures under the petition, in order to ensure that maritime trade remains strong and sustainable. The Union stands ready to work with industry leaders and government officials to advocate for policies that protect jobs, trade, and economic growth for both countries.
About the SIU of Canada: The Seafarers’ International Union of Canada (SIU) is affiliated with the Seafarers’ International Union of North America serving unlicensed sailors since 1938. The SIU Canada has been representing the majority of seafarers working aboard vessels on the Great Lakes, St. Lawrence River, East Coast, West Coast and Arctic since 1954. SIU members have acquired the reputation of being amongst the best-trained and most qualified sailors in the world. The SIU represents thousands of qualified seafarers across Canada.
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Source: Seafarers’ International Union of Canada
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