In my editorial for the latest edition of The Motorship, I wrote about how Trump’s inauguration saw the China baiting that was a hallmark of his first administration renewed with vigour. But with tariffs coupled with geopolitical tensions in Ukraine and Middle East, the impact on shipping companies is plain to see.

UK-listed ship broker Clarksons is down by over a quarter, seeing 28% wiped off its share price as Trump announced his far-reaching trade tariffs. Closer to The Motorship’s core market, Wärtsilä has seen its share price drop by over 17% and there has been similar declines in other marine tech powerhouses like ABB and its spin-off Accelleron.

The mainstream media is focused on the large shipowners and logistics giants like Hapag-Lloyd and Maersk which both saw over 20% drops in their respective share prices but little has been said about the companies who make vital components for the vessels these companies own.

Shipping is renowned for its resilience. Following the Covid 19 shock, the three main traded segments in US-listed shipping: tankers, containers and dry bulk all went on their own very distinct voyages but broadly all recovered and thrived.

Trump’s proposed $1.5 million levy per vessel for Chinese-made containerships simply beggars belief. Ostensibly a move to stimulate the US’s own shipbuilding industry, what happens when US consumers realise that it is they who will have to pay for this punitive measure when goods increase in prices?