The U.S. Trade Representative's office on Thursday said it has found China's targeted dominance of the global shipbuilding, maritime and logistics sectors is "unreasonable" and is "actionable" under U.

A US government investigation concluded that Chinese subsidies unfairly benefit the nation’s shipbuilding industry and harm American competitors, a decision that likely sets the stage for tariffs.

The ruling opens the door for the incoming Trump administration to levy more Section 301 penalties against the country.