SSGA seeking clarity from DC on urgent trade matters

By Gary Williams, SSGA Director of Transportation & Regulatory Affairs 

With the U.S. Trade Representative’s (USTR) proposed tariffs still set for possible implementation this October, grain trade and other impacted industries continue to await clear answers on critical details. Despite repeated outreach, there has been little response from USTR to specific questions raised by stakeholders. 

In recent coordination calls with the National Grain and Feed Association, the National Retail Federation, port authorities, and other groups, there is a growing consensus that the most effective strategy now is to direct advocacy efforts toward legislators and other key influencers. The goal: to press USTR for feedback, details and clarity before the proposed policy takes effect. 

While USTR has acknowledged some points – such as the idea of removing penalties on carriers that own China-built vessels and inviting comments on potential tariffs for China-built ship-to-shore cranes, containers, and chassis – questions remain unanswered regarding the proposed tariffs on China-built vessels arriving at U.S. ports. 

If implemented, the policy could create winners and losers within the shipping industry. Some carriers, like COSCO and OOCL, whose fleets are largely or entirely China-built, may face significant tariff exposure. Others, with more diversified fleets, might reallocate vessels strategically to limit tariff impacts. However, such rerouting could reduce port calls, potentially creating new challenges in container availability and port congestion. Even carriers able to avoid direct tariffs might still impose additional charges on shippers – similar in concept to corridor fees – as a hedge against operational risk. 

For SSGA members, the stakes are high. With fall harvest approaching, contract terms vary: in some cases, customers pay the prevailing rate for container moves; in others, sellers absorb costs above a base rate. Without clarity from USTR, it is difficult to forecast impacts on demand, profit margins and inventory flow. 

Next week, members of SSGA’s Executive Board, staff and the newly appointed chair of the Competitive Shipping Action Team will meet with legislators and federal agencies in Washington, D.C. This issue will be front and center in nearly every discussion, as SSGA continues to voice the urgent need for answers before any tariff changes take effect.