The Port of Virginia and other port and terminal operators across the country are pushing back against a new round of proposed tariffs on imports from China.
Like ports across the world, the Port of Virginia is now installing new gantry cranes. Built to handle longer and wider container ships, these ship-to-shore cranes are popping up along the Atlantic seaboard and across the Pacific. But there’s a problem: a proposed 25% tariff of Chinese imports, and most of these new gantry cranes come from China.
Kurt Nagle at the American Association of Port Authorities says the tariff would cut into infrastructure improvements.
“These ship-to-shore cranes can cost upwards of $14 million apiece," Nagle explains. "So if you are talking about up to a 25% tariff on that, what you would essentially be doing is if you’re buying four cranes you’d essentially be paying the equivalent of five cranes but only getting four cranes.”
This is round four in a back-and-forth conflict with China. Last year, port and terminal operators were able to beat back a similar tariff during round three. Now the summer sequel is resurrecting the tariff scare.
Dan Pearson at Americans for Prosperity says a 25% tariff would cut into the budget for access roads and multimodal connections and yard equipment.
“When you put in effect a policy that may prevent the Port of Norfolk from upgrading its discharge and loading capabilities – that hurts,” he says.
The list of which items the tariff applies to — and which ones it does not — is a matter of intense interest in Washington and in Hampton Roads.
This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.
