Notice of Modification of Section 301 Action: China's Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance

Issuing agencies

Abstract

To allow for further discussion with China regarding the acts, policies, and practices at issue in this investigation, the U.S. Trade Representative (Trade Representative) is modifying the action taken in this investigation to further suspend that action for two months, until January 10, 2027.

Full Text

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<title>Federal Register, Volume 91 Issue 216 (Tuesday, November 10, 2026)</title>
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[Federal Register Volume 91, Number 216 (Tuesday, November 10, 2026)]
[Notices]
[Pages 72608-72609]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-22867]


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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.

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SUMMARY: To allow for further discussion with China regarding the acts, 
policies, and practices at issue in this investigation, the U.S. Trade 
Representative (Trade Representative) is modifying the action taken in 
this investigation to further suspend that action for two months, until 
January 10, 2027.

DATES: November 9, 2026: The actions taken in this investigation are 
further suspended through 11:59 p.m. Eastern Time on January 9, 2027.

FOR FURTHER INFORMATION CONTACT: Philip Butler, Deputy Assistant U.S. 
Trade Representative for Monitoring and Enforcement; Thomas Au, Senior 
Counsel for Industrial Policy; or David Salkeld, Associate 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, 2025 FRN), 90 FR 
24856 (June 12, 2025), 90 FR 48320 (October 16, 2025) (October 16, 2025 
FRN); 90 FR 50762 (November 10, 2025) (November 10, 2025 FRN), 90 FR 
50947 (November 13, 2025) (November 13, 2025 FRN), and 91 FR 67388 
(October 26, 2026) (October 26, 2026 FRN).
    On April 17, 2025, pursuant to sections 301(b), 301(c), and 304(a) 
of the Trade Act of 1974, as amended (Trade Act) (19 U.S.C. 2411(b), 
2411(c), and 2414(a)), and subsequently on October 16, 2025, pursuant 
to section 307(a) (19 U.S.C. 2417(a)), following consideration of 
public comments, as well as consultations with advisory committees and 
the Section 301 Committee, the Trade Representative determined to take 
action in this investigation, including fees on certain maritime 
transport services and duties on ship-to-shore (STS) cranes and other 
cargo handling equipment of China. See April 23, 2025 FRN; October 16, 
2025 FRN (modifying certain aspects of the actions in the 
investigation).
    On November 1, 2025, the White House announced a historic trade and 
economic deal reached between President Trump and President Xi of 
China. The White House, Fact Sheet: President Donald J. Trump Strikes 
Deal on Economic and Trade Relations with China (Nov. 1, 2025), <a href="https://www.whitehouse.gov/fact-sheets/2025/11/fact-sheet-president-donald-j-trump-strikes-deal-on-economic-and-trade-relations-with-china/">https://www.whitehouse.gov/fact-sheets/2025/11/fact-sheet-president-donald-j-trump-strikes-deal-on-economic-and-trade-relations-with-china/</a>. 
Pursuant to this deal, the United States would suspend for one year, 
beginning on November 10, 2025, the responsive actions taken in this 
investigation. This period would allow the United States to negotiate 
with China pursuant to Section 301 regarding the issues raised in this 
investigation as well as to continue U.S. domestic efforts and 
discussions with key allies and partners on revitalizing American 
shipbuilding.
    Following consideration of public comments and advice from the 
Section 301 Committee, the Trade Representative, at the specific 
direction of the President, suspended the actions in this investigation 
from November 10, 2025 through November 9, 2026. See November 13, 2025 
FRN.
    Discussions with China regarding the acts, policies, and practices 
at issue in this investigation are ongoing. In this light, and in 
accordance with Section 307(a)(2) of the Trade Act, on October 23, 
2026, the Trade Representative proposed to further suspend the action 
in this investigation for two months, until January 10, 2027. The Trade 
Representative requested comments from any interested person regarding 
the proposal to further suspend the responsive actions. See October 26, 
2026 FRN.

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.
    The circumstances that warranted the initial suspension continue to 
exist, and to allow for further discussion with China regarding the 
issues in this investigation, and at the direction of the President, 
the Trade Representative has determined that the action taken on

[[Page 72609]]

April 17, 2025, as modified, is no longer appropriate and will be 
further suspended for two months, until January 10, 2027.
    Therefore, effective on November 9, 2026, the U.S. Trade 
Representative is further suspending the responsive actions taken in 
this investigation in the April 23, 2025 FRN, as modified by the 
October 16, 2025 FRN and as further modified by the November 13, 2025 
FRN, until January 10, 2027. Accordingly, effective on November 9, 
2026, 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 10, 2026,'' and by inserting 
``January 10, 2027,'' in lieu thereof.
    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, 2025 FRN, as modified by the 
October 16, 2025 FRN and as further modified by the November 13, 2025 
FRN. 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, 2025 FRN, as further modified by the November 13, 2025 
FRN.

III. Responses to Significant Comments

    In response to the October 26, 2026 FRN, USTR received 
approximately 60 unique comments. Some comments supported the proposal 
to further suspend the action. Some comments noted that further 
suspension of the action would avoid increased shipping costs and 
prevent commercial disruptions. Some comments also recommended further 
suspension of the actions to provide time for continued negotiation 
with China on the issues raised in this investigation.
    Comments opposing the further suspension asserted that the 
responsive action is needed to address China's acts, policies, and 
practices by creating incentives to invest in U.S. shipbuilding and 
related industries, such as containers. These comments argue that, 
without the action, China's dominance across the maritime, logistics, 
and shipbuilding sectors will increase.
    Some comments recommended permanent suspension of one or all of the 
maritime service fees provided for in Annex III of the April 23, 2025 
FRN, as modified by the October 16, 2025 FRN. These comments generally 
asserted that if the suspension is not continued, there may be 
commercial disruptions that negatively impact U.S. exports.
    Some comments addressing the suspension of restrictions of Annex IV 
of the April 23, 2025 FRN, as modified by the October 16, 2025 FRN, 
generally supported further suspension and recommended permanently 
lifting the restrictions provided in Annex IV.
    Some comments addressing the suspension of the additional tariffs 
on STS cranes and other cargo handling equipment in Annex V.A of the 
October 16, 2025 FRN, as well as the proposed tariffs on additional 
cargo handling equipment in Annex V.B of the October 16, 2025 FRN, 
generally supported ending the suspension and addressing tariffs 
separately from the maritime service fees.
    Considering the comments, the Trade Representative has determined 
that the action taken on April 17, 2025, as modified, is no longer 
appropriate and will be further suspended for two months, until January 
10, 2027. During this further suspension, the United States will 
continue discussions with China to address the acts, policies, and 
practices at issue in this investigation and take actions to expand 
domestic commercial shipbuilding capacity, build a resilient workforce, 
and continue to partner with key allies to increase U.S. shipbuilding 
capacity. See The White House, America's Maritime Action Plan (Feb. 
2026), <a href="https://www.whitehouse.gov/wp-content/uploads/2026/02/Restoring-Americas-Maritime-Dominance.pdf">https://www.whitehouse.gov/wp-content/uploads/2026/02/Restoring-Americas-Maritime-Dominance.pdf</a>.

IV. Ongoing Monitoring

    The 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 January 10, 
2027, suspension deadline. If modification to the action may be 
appropriate pursuant to Section 307 of the Trade Act, the 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. 2026-22867 Filed 11-9-26; 8:45 am]
BILLING CODE 3390-F4-P


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