China’s president, Xi Jinping, ceremonially opened operations at a China-funded deepwater port at Chancay, Peru, on November 14, establishing a significant new trade link between China and the South American market.

The China-backed megaport has the potential to create whole new trade routes that will bypass North America entirely, says BBC News.

But, according to gCaptain, any product headed for the U.S. through Chancay or any Chinese-owned or controlled port in the region should be subject to the 60% tariff on Chinese goods proposed by incoming U.S. president Donald Trump, as if the product was from China, said Mauricio Claver-Carone, an adviser to Trump’s transition team. 

Xi told U.S. President Joe Biden at a meeting in Lima on November 16 that he’s ready to work with Trump to improve the relationship between the world’s biggest economies. Xi and Biden, along with other heads of state, were in Peru for a summit of Asia-Pacific Economic Cooperation leaders. 

Construction at Chancay Port began in 2021, on a first phase that includes four dock berths. The port’s maximum depth is 17.8 meters, allowing it to accommodate ultra-large container ships with a capacity of up to 18,000 TEUs. Initially, throughput capacity will be 1 million TEUs per year, and 1.5 million TEUs in the long term.