The US government is in talks to impose high taxes on Chinese-made ships docked in US ports.
This has raised concerns among businessmen as high taxes will increase costs, disrupt supply chains and make American products more expensive and less attractive to outsiders.
This action is part of US efforts to weaken China’s dominance in the shipbuilding sector.
Analysts expect this tax to have a negative impact on US ports as most shipping companies will look for alternative routes to avoid being taxed.
There is an advantage if the tax is implemented, which can generate around $52 billion in revenue, but the US may face the possibility of causing layoffs and increasing inflation.
For now, many shipping companies have avoided using Chinese-made ships to avoid tariffs imposed on them.
