Numerous articles describe how current steel import tariffs could raise the cost of cars and homes. But not much attention has been given to their impact on shipbuilding costs.

Beginning in April 2029, the Office of the United States Trade Representative (USTR) will enforce a requirement that 1% of all liquified natural gas (LNG) exports from the U.S. be shipped aboard a U.S.-built LNG carrier. The U.S. hasn’t built an LNG carrier in nearly 50 years. 

If you’re a shipping company that uses a Chinese leasing structure to finance your fleet but otherwise has no ties to China, what are you to do under the U.S. Trade Representative’s proposed measures?

These USTR fines, designed to target China’s shipbuilding dominance, inadvertently places Caribbean economies and smaller carriers at significant economic risk. The Bahamas and neighboring island nations, having minimal influence over vessel sourcing, face unintended but severe economic consequences.