A new policy proposal from the Office of the U.S. Trade Representative (USTR) could affect Montana’s pulse industry and the broader agricultural export economy. As part of its Section 301 investigation into China’s maritime and logistics sectors, the USTR has introduced a measure (Docket No. USTR-2025-0003) that would impose port fees on Chinese-built or Chinese-owned vessels and phase in a requirement for U.S.-built, U.S.-flagged ships to handle U.S. exports. This move—while aiming to boost American shipbuilding—could instead backfire on pulse farmers and processors across Montana.
Section 301 refers to a provision of the Trade Act of 1974 (specifically, 19 U.S.C. § 2411) that gives the Office of the United States Trade Representative (USTR) broad authority to investigate and respond to unfair trade practices by other countries.
“A proposed policy action from the Office of the United States Trade Representative (USTR) could have severe consequences for U.S. agriculture, including the pulse industry,” said Tim McGreevy, CEO of USA Pulses.
Unrealistic Compliance Timelines and Skyrocketing Costs
The proposed rules could present a logistical and economic nightmare. U.S.-built bulk vessels make up only 0.2% of the global fleet, and more than half of them were built in China. This leaves very few ships that would qualify under the new requirements—nowhere near enough to handle container exports from American farmers and processors.
Without a long-term, phased strategy to expand U.S. shipbuilding capacity, the proposal imposes compliance deadlines that are simply unachievable. Exporters already report tender bids increasing due to uncertainty, and vessel operators have indicated they plan to pass 100% of the port fees onto shippers. That means containerized export costs could double, undermining the competitiveness of U.S. pulses and other crops in global markets.
Montana’s Farmers Could Be First to Feel the Pain
Montana is the leading producer of dry peas, lentils, and chickpeas in the U.S., and these crops are heavily export-dependent. Every added dollar of freight cost or regulatory burden shrinks margins for pulse growers. When overseas buyers look elsewhere—often to competitors in Canada or Australia—our local farmers pay the price through lower bids, wider basis levels, and lost market share.
The Montana Pulse Crop Committee’s strategic plan emphasizes the need for open markets, efficient transportation systems, and policies that enhance competitiveness. This proposal does the opposite—it creates barriers instead of breaking them down.
Policy Could Hurt the Very Industry It Aims to Help
While intended to stimulate domestic shipbuilding and reduce reliance on China, the policy could ironically reduce demand for new U.S.-built ships. By pushing exporters off the water altogether due to prohibitive costs, fewer orders for vessels would materialize. According to
Industry estimates, few vessels would be exempt, and the policy could foist up to $30 billion in annual import costs onto American consumers. That’s a lose-lose scenario for producers, shippers, and taxpayers alike.
“We’ve strongly urged the USTR to delay implementation of the vessel sourcing and port fee measures,” said McGreevy. “There must be a methodical, phased strategy that invests in U.S. shipbuilding capacity before placing new burdens on U.S. exporters.”
A Smarter Path Forward
USA Pulses and the Montana Pulse Crop Committee are advocating for a long-term solution that works for farmers and shipbuilders alike. We support investment in American shipbuilding infrastructure and training a skilled workforce—but not at the expense of current agricultural exports. Any new policy must be coordinated with stakeholders, especially in rural economies where farming is a lifeline.
We call on federal policymakers to:
● Delay implementation of the sourcing requirements and port fees
● Develop a clear roadmap to expand U.S. shipbuilding capacity
● Engage pulse industry stakeholders to ensure competitiveness is preserved
Montana’s pulse farmers feed the world—and they deserve trade policies that support, not sabotage, that mission.
▶ Interested in this topic? Stay tuned to the Montana Pulse Crop Committee blog for more information as it becomes available.
