'Service fees': Further recklessness from the White House

Editor's note: Anthony Moretti, a special commentator for CGTN, is an associate professor at the Department of Communication and Organizational Leadership at Robert Morris University in the U.S. The article reflects the author's opinions and not necessarily those of CGTN.

Donald Trump returned to the White House a little more than two months ago. In that time, he has often said or done something that has left people to question what strategy might be influencing his choices.

Such reactions were again on display Monday in the United States, and likely in many places around the world, when the president again discussed levying service fees that might reach $1.5 million for all Chinese ships entering the U.S. ports. He defended his idea by claiming that he wanted to "resurrect the American shipbuilding industry" while also boosting the nation's defense industrial base.

What utter nonsense.

First, let's call these service fees what they are – tariffs. Trump loves tariffs and he has threatened (or unveiled) them against a host of nations for various reasons that have not stood up to scrutiny. Perhaps more importantly, his affinity for them means he ignores the obvious: American consumers pay the tariffs most notably through higher prices on goods and services. But Trump's "service fees" idea will also bring about a double whammy: It will put unneeded restraints on U.S. businesses.

As Bloomberg reported, critics of the plan fear a "trade apocalypse" will result. That is not hyperbole: The fees would also damage the U.S. exporters seeking to move products, such as agriculture and energy, to a host of other industries somewhere around the world. Putting all of this in the most simplified terms: "Service fees" will mean fewer and more expensive goods coming in and fewer goods going out.

America loses in both circumstances.

Next, America's shipbuilding industry is a mess and China is not responsible for that crisis. Moreover, "service fees" from Chinese ships will not change that. Let's be honest: Bringing America's shipbuilding industry back to life would require a years-long commitment from the federal government.

The sclerotic nature of the U.S. federal government, not to mention the incessant demands of the business community, guarantees that America will always focus on the next quarter, not the next decade. It will always focus on today, not tomorrow. It will always presume it can buy or talk its way out of any problem. Let's compare America's strategy to that of the Chinese.

China thinks long term. It operates with a decades-long commitment. It plans with detail. Shipbuilding is but one example.

The Center for Strategic and International Studies (CSIS) stated in a report it released earlier this month that in 2024, China built more than half of all commercial ships, while the U.S. produced 0.1 percent. That is one-tenth of one percent, or basically zero.

And how did China get to this point? A long-term strategy. Scroll to the bottom of page 10 of the CSIS report and you read this: "China's emergence as a global shipbuilding powerhouse gained momentum in the early 2000s, driven by major policy shifts. Recognizing that the rapid growth of containerized maritime trade would be a boon for global shipbuilders, Beijing began developing ambitious plans to position Chinese firms at the forefront of the industry."

A strategy launched roughly 20 years ago is now bearing fruit. That takes patience. America has no interest in patience. Two reasons define that lack of patience whether the issue is shipbuilding, electric vehicles, or any other modern industry.

First, there is a zeal for short-term corporate profits and increasing stock prices. Corporate executives know a bad quarter or two means a decline in stock prices, incessant questions about what is wrong and an immediate reaction that often leads to job cuts.

Second, for the better part of 40 years, the Republican Party has sought to steadily reduce the role of government in people's lives. One of the effects is that investment in items such as infrastructure and heavy industries has been tossed aside.

Trains provide a relevant example of that mistake. Scroll through any social media platform, and you are certain to see one story after another about the smooth and efficient high-speed train system throughout China. By comparison, anyone who "rides the rails" in the United States knows that the U.S. train system is a wreck; Amtrak, the nation's public rail line, regularly shares tracks with freight trains, which take priority in many places. Thus, train rides are slow and inefficient.

If you are in China, a high-speed train from Beijing to Shanghai, a distance of about 1300 kilometers, will take about 4.5 hours at its fastest. If you are in the U.S., a train ride from Pittsburgh, where I live, to Washington, a distance of about 400 kilometers, will take you 7.5 hours. Think about it.

Since returning to office, Trump has refused to listen to ideas that do not agree with his. His absolute conviction that America will get rich from tariffs will now be joined by a belief that "service fees" will make U.S. shipbuilding great again. And provided that public opinion remains on his side on this issue, he also has that hammer to use against critics.

(If you want to contribute and have specific expertise, please contact us at opinions@cgtn.com. Follow @thouse_opinions on X, formerly Twitter, to discover the latest commentaries in the CGTN Opinion Section.)