FMC commissioners announce enforcement of measures to close a tax loophole benefiting cargo routed through Canada and Mexico, impacting US ports.
Two Federal Maritime Commission commissioners stated that the Trump administration has begun enforcing measures to close a decades-old loophole that allowed cargo routed through Canadian and Mexican ports to avoid US Harbor Maintenance Tax fees, reported Ventura, California's gCaptain.
Commissioners Max Vekich and Laura DiBella noted that this move marks a significant shift in maritime trade enforcement, targeting distortions in cargo flows and port competition. They commended the administration for addressing what they described as a threat to the US economy and maritime interests.
This action follows Section 6 of President Trump's April 2025 executive order, Restoring America's Maritime Dominance, which directed Homeland Security and Customs to enforce the collection of duties, taxes, and fees, including the Harbor Maintenance Tax, on foreign cargo entering via land borders. A new 10 percent service fee will cover additional processing costs.
The Harbor Maintenance Tax, set at 0.125 percent of cargo value, funds US port upkeep. For nearly two decades, shippers have avoided this tax by routing cargo through Canadian and Mexican ports, thereby reshaping North American trade flows. Canadian ports, supported by government investment, have expanded capacity to capture US-bound cargo.
A 2012 FMC study estimated that eliminating this disparity could shift half of US-bound container traffic from Canada's West Coast back to American gateways. Similar competitive pressures have emerged from Mexican ports as cross-border logistics have expanded.
The commissioners warned that inaction could lead to further loss of US port traffic, investment, and jobs, with Canadian and Mexican terminal projects threatening closures at American ports. They asserted that closing the loophole would benefit US workers and strengthen domestic port competitiveness.
The White House described the policy as a fairness measure aimed at leveling the playing field for US ports. The commissioners emphasized that their comments reflected personal views and did not necessarily represent the official position of the FMC.
