Washington DC - Businesses are warning that President Donald Trump's proposed fees on Chinese vessels at US ports will bring higher costs and trigger severe supply chain problems.

The National Retail Federation (NRF) and Retail Industry Leaders Association (RILA) warned in a letter that "Imports and exports would decline as a result of the higher costs of the fees, and/or the mandate to use more expensive US-built, US-operated ships."

While the shipbuilding sector "might see small gains over time," costs to other sectors and the broader economy would be greater, the organizations argued.

In February, the Trump administration proposed fees on Chinese ships when they dock in the US as a way to revitalize a steadily declining shipbuilding and shipping industry in the US, as Beijing has upped competition in recent years.

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The proposal could see levies of up to $1.5 million imposed on Chinese-built ships, as well as a range of other measures.

A Financial Times report revealed that some exporters have stopped receiving bids on commodity shipments due to the high prices, with a particularly large impact on bulk agricultural goods.

The fear is that about 60% of the world's carriers may be impacted by the fees, making it unprofitable for US farmers to sell their goods overseas.

"It's a double whammy for the US farming industry," Ishan Bhanu, a senior analyst at commodity consultancy Kpler, told the Financial Times. "It will be US farmers who will bear most of the brunt of this."