Tariffs may be designed to protect U.S. industries, but at America’s ports, they’re doing just the opposite—stalling critical upgrades and straining operations. Shipping facilities across the country are putting off major equipment purchases as the Trump administration’s new tariffs drive up costs, particularly on the massive cranes essential to handling the world’s largest container ships, The Wall Street Journal reported.
According to the Federal Reserve Bank of San Francisco, the economic effects of tariff hikes come in two stages. Initially, higher tariffs tend to raise unemployment and lower inflation, mimicking a demand shock. Over time, however, inflation rises to levels beyond what would have occurred without the tariffs. That longer-term price pressure is being felt acutely at the ports, where the economics of expansion have become precarious.
Ports rely on heavy machinery—especially ship-to-shore cranes—to move ever-growing cargo volumes. Newer models can service larger container ships in fewer trips, lowering shipping costs and benefiting importers and consumers alike. Yet replacing outdated cranes has become far more difficult since China, the leading manufacturer of port cranes, was hit with tariffs of up to 100%. The goal, according to the administration, is to reduce dependence on Chinese-made equipment and boost U.S. production in maritime systems.
That policy has largely halted business. “The order book for Chinese cranes from America has pretty much stopped,” Tim McCarthy, chief operating officer of Harbor Industrial Services, which works with West Coast ports, told The Wall Street Journal. “People are still going down the path of project work, but they are asking what can we do to extend the life of our existing fleet and delay these procurements until we really have to procure them.”
Roughly 80% of U.S. port cranes were built in China, according to U.S. estimates. The American Association of Port Authorities told The Wall Street Journal that only three companies outside China supply cranes globally, and their machines cost about 15% more. Even then, those manufacturers cannot meet U.S. demand of roughly 20 new cranes per year.
The administration has argued that higher tariffs will spur domestic production. But ramping up manufacturing would take years and require specialized technical expertise that may not yet exist in the U.S. For now, the industry is caught in a cycle of uncertainty. Trump recently paused the 100% tariffs for a year under a new trade deal with China, but shifting policy signals make planning difficult. Even an order placed today might arrive after tariffs are reinstated—leaving ports locked into costly equipment just to keep pace with global shipping demands.
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