The Trump administration on Thursday announced new fees targeting Chinese-built and Chinese-owned vessels docking at U.S. ports, escalating the ongoing trade war between Washington and Beijing. The move is aimed at countering China’s growing dominance in the global shipbuilding industry and protecting U.S. maritime interests.

The announcement, made by the Office of the United States Trade Representative (USTR), follows a year-long investigation launched under the Biden administration into China’s shipbuilding practices. USTR Ambassador Greer said the decision is designed to “begin to reverse Chinese dominance, address threats to the U.S. supply chain, and send a demand signal for U.S.-built ships.”

The new policy will introduce fees based on net tonnage per voyage for Chinese-built and owned vessels entering U.S. ports. This first phase is set to take effect in 180 days. A second phase, targeting foreign-owned liquefied natural gas (LNG) vessels built in China, will be implemented within three years.

The fees could reach as high as $1 million for each Chinese-built ship and $1.5 million for foreign-owned carriers with Chinese-built vessels in their fleets, according to findings from the USTR investigation. The move marks a significant shift in maritime trade policy, as the U.S. seeks to reduce its dependency on Chinese-made ships.

The USTR probe, launched in April 2024 under Section 301 of the 1974 Trade Act, was prompted by a petition from five national labor unions raising concerns over China’s increasing control over global shipping. The USTR concluded that China’s practices unfairly displaced foreign competitors and reduced global competition in maritime logistics.

China currently dominates the global shipbuilding market, with Chinese-built vessels accounting for 81% of the total market share in 2024. In the energy sector, China controls 48% of the liquefied petroleum gas (LPG) vessel market and 38% of the LNG sector, according to Veson Nautical.

In response to last year’s proposal, China’s Ministry of Commerce criticized the U.S. investigation as “a mistake on top of a mistake.” However, no official statement has been issued following the latest U.S. policy announcement.

Despite the new maritime fees, President Trump appeared to signal a pause in further tariff hikes. Speaking to reporters, he said, “At a certain point, I don’t want [tariffs] to go higher because… you make it where people don’t buy.” Trump indicated he may lower existing tariffs to avoid further disruption in trade flows.

Currently, the Trump administration has imposed tariffs of 145% on all Chinese imports, while China has retaliated with 125% tariffs on U.S. goods. In response, Beijing has hinted at shifting its countermeasures to the U.S. services sector, including legal consultancy, tourism, and education.

As tensions continue to rise, the shipping fee move represents a broader effort by Washington to reshape global trade and strengthen domestic manufacturing — though it risks inflaming economic ties with China even further.

The global luxury industry, already grappling with declining demand and changing consumer habits, faces a new hurdle as the trade war between the United States and China intensifies. Analysts warn that the sector’s fragile recovery may be further threatened by President Donald Trump’s recent decision to hike tariffs on Chinese goods to as high as 245%.

According to a memorandum seen by Euronews, the luxury market is forecasted to grow modestly at 1% to 3% annually between 2024 and 2027. This is a sharp slowdown compared to the 5% yearly growth seen between 2019 and 2023, and 9% between 2021 and 2023, as highlighted in a report by McKinsey.

China and the US are two of the largest luxury markets globally. In 2023, China accounted for 22%–24% of global luxury consumption, while US consumers contributed around 21% of total revenue in 2024, according to Bain & Company and Bank of America. Popular products in both markets include handbags, cosmetics, footwear, and leather goods, with brands such as Chanel, Dior, Louis Vuitton, Gucci, and Prada dominating sales.

However, economic slowdowns in both countries, combined with rising inflation and interest rates, have already caused luxury shoppers to scale back. The cost of living crisis in several regions has shifted consumer preferences toward more durable and budget-conscious purchases. Furthermore, luxury brands that raised prices post-pandemic without matching innovation are losing their exclusivity appeal.

The latest round of US tariffs, coupled with retaliatory Chinese tariffs currently at 125%, have added fresh uncertainty to the sector. Global stock markets have responded negatively, wiping billions in market capitalization from luxury giants. Shares of Lululemon Athletica dropped 20.7% on Nasdaq, Prada Group fell 23.4% on the Hong Kong Stock Exchange, and Kering and LVMH declined 26.3% and 19.9% respectively on Euronext Paris.

LVMH, often seen as a bellwether for the luxury industry, reported a 2% dip in Q1 2025 revenue to €20.3 billion. Fashion and leather goods revenue dropped 4%, perfumes and cosmetics remained flat, and wines and spirits fell 8%. Only watches and jewelry showed growth with a modest 1% increase.

Beyond China, US tariffs on EU goods—although reduced to 10% temporarily—also pose risks. The US imports various luxury products from Europe, including wine, chocolate, high-end apparel, and cars. These tariffs could increase prices for American consumers, potentially leading to reduced spending.

Additionally, the fragmented and globalized supply chains of luxury brands may incur hidden costs due to tariffs, further squeezing margins and complicating logistics.

In a surprising twist, the rising cost of luxury imports has led some Chinese manufacturers to promote knock-off products directly to US consumers via platforms like TikTok. Claiming to be original equipment manufacturers, they offer imitations of products like Birkin bags and Lululemon leggings at steep discounts. While their claims are largely unverified, Chinese wholesale platform DHgate has surged to the number two spot on the US Apple App Store, signaling growing consumer interest in alternatives amid rising prices.

As trade tensions deepen, the luxury sector is bracing for further disruptions in an already turbulent market landscape.

Dutch semiconductor equipment maker ASML reported weaker-than-expected first-quarter earnings on Wednesday, falling short of analyst forecasts. Despite the setback, the company reaffirmed its full-year 2025 guidance, projecting annual revenue between €30 billion and €35 billion.

ASML, which holds a dominant position in the chipmaking industry with its advanced extreme ultraviolet (EUV) lithography systems, saw its net bookings drop sharply to €3.94 billion — a significant miss compared to analyst expectations of €4.89 billion and a 44% decline from the previous quarter.

Total net sales for Q1 reached €7.7 billion, slightly under the anticipated €7.8 billion and a notable fall from €9.3 billion in the final quarter of 2024. Net income also declined to €2.4 billion from €2.7 billion. However, the company’s gross margin improved to 54%, up from 51.7% in the prior quarter.

Looking ahead, ASML expects Q2 revenue between €7.2 billion and €7.7 billion, with gross margins ranging from 50% to 53%.

CEO Christophe Fouquet acknowledged the uncertain macroeconomic landscape and mounting geopolitical tensions as factors contributing to the company’s performance risk in the near term. “The recent tariff announcements have increased uncertainty in the macro environment, and the situation will remain dynamic for a while,” he said.

Fouquet also pointed to the growing influence of artificial intelligence as a significant market driver, but cautioned that it brings both opportunities and challenges. “AI has created a shift in market dynamics that benefits some customers more than others,” he noted, suggesting that this divergence adds volatility to ASML’s revenue forecasts.

This marks a more cautious tone compared to last year, when Fouquet projected robust annual growth of 8% to 14% through the end of the decade. ASML had previously aimed for revenue between €44 billion and €60 billion by 2030, alongside gross margins of 56% to 60%.

Trade tensions, particularly between the US and China, remain a major headwind. ASML outlined concerns about the potential fallout from proposed US semiconductor tariffs, including higher freight costs and possible retaliatory actions. The company’s share price has dropped 18% since mid-February, following comments by former US President Donald Trump on new semiconductor tariffs.

The situation was further compounded by the U.S. Department of Commerce’s recent decision to launch an investigation into semiconductor imports. Nvidia also issued a warning regarding potential business impacts from escalating US-China trade restrictions, developments that could influence investor sentiment towards ASML.

Despite the challenging environment, ASML continues to return capital to shareholders. The company announced a proposed dividend of €6.40 per ordinary share for 2024, up 4.9% from the previous year, and repurchased €2.7 billion in shares during Q1 under its ongoing three-year buyback program.