USTR Sector 301 impact - Yangzijiang Shipbuilding terminates $180 million tanker contract

Image credit – Artificial Intelligence

USTR, United States Trade Representative has initiated section 301 which will be in effect from 14th October 2025 for extra service charge from Chinese built and operated ships. We have mentioned it in detail in our earlier blog.

Recently Yangzijiang Shipbuilding Holdings Ltd - a Chinese firm in shipbuilding has announced to terminate its contract for four oil tankers with below details.

Dead Weight – 50,000 MT each Tanker

Total value – USD 180 million

It has not declared other details, but the company has reserved it legal rights for the buyer. The Shipbuilder has cancelled the deal anticipating a breach in agreement due to the USTR proposals.

This might be just the beginning and in coming weeks we can see more cancellation of such orders.

Global impact – The buyers can now give orders to ship builders at Japan, South Korea, Greece etc.