The American Association of Port Authorities (AAPA) is calling on the U.S. government to roll back a soon-to-be-implemented 25% tariff on ship-to-shore cranes imported from China. 

The levy on Chinese cranes takes effect on August 1, as part of a suite of other tariffs on goods from China announced by the Biden administration in May, including electric vehicles, solar cells, medical products, steel, and semiconductors. Now, the AAPA — which represents more than 130 port authorities across North America — is saying that the new tariffs could come with dire consequences for U.S. shipping hubs. 

“Simply put, AAPA is confident that the tariff will not meet its stated objectives," said AAPA president and CEO Cary Davis in a July 1 news release. "Instead, it will only result in negative outcomes, including grave harm to port efficiency and capacity, strained supply chains, increased consumer prices, and a weaker U.S. economy.”

According to the AAPA, at least seven of its ports have a combined 35 ship-to-shore cranes on order from Chinese manufacturers, all set to arrive after the new tariff comes into effect. With the new levy, the AAPA estimates roughly $131 million in "new, unexpected costs" that ports will have to cover, potentially forcing terminal operators to "scale back" existing plans for new infrastructure. 

Concerns over Chinese-made cranes date back to March, when cellular modems were discovered in Chinese ship-to-shore crane components at a U.S. port, as well as in the server room housing a separate port's firewall and networking equipment for its own cranes. Neither port knew how or why the modems were installed, sparking a congressional probe and an executive order expanding the Department of Homeland Security's authority to address maritime cyber threats. Nearly 80% of all cranes in the U.S. come from China's Shanghai Zhenhua Heavy Industries.