The Port of Los Angeles anticipates a 35% drop in shipments from China due to tariffs imposed by former President Donald Trump, according to Gene Seroka, the port’s executive director. Speaking on CNBC’s “Squawk Box,” Seroka revealed that incoming cargo volume is expected to decline significantly next week compared to the same period in 2024.
Shipments from China constitute approximately 45% of the Port of LA’s business. Some transport companies are mitigating losses by sourcing goods from other Southeast Asian locations. However, Seroka emphasized that trade volumes will remain minimal until an agreement with China is reached.
The port expects a quarter of the usual number of arriving ships to be canceled in May. This slowdown stems from the latest escalation in the US-China trade conflict, with both countries imposing tariffs exceeding 100% on many imports. Economists warn that prolonged supply chain disruptions could deepen economic challenges.
US retailers currently have sufficient inventory stockpiled before the tariff announcement, providing temporary insulation. Seroka estimates companies have five to seven weeks of full inventories before shortages occur. Consumers may notice reduced product variety and potential price hikes.
— new from New York Post