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After President Donald Trump raised China’s import duties to 125% on Wednesday after China raised US goods obligations to 84%, the Los Angeles and Long Beach ports are being supported by low cargo and job losses in the coming months, officials said.
Almost half of the companies handled by ports are in China, which combines both imports and exports.
“If my predictions are correct, we can see that cargo volumes will drop by at least 10% later this year,” said LA Executive Director Jeanseroka.
Large companies doing business through the Port of LA have been frontloading or moving forward with inventory for the past few months, as expected. Trump issues tariffs.
“Think about patio furniture, sofas, chairs, TVs and electronics. We know that new tariffs will come in on this day,” Celoka said.
The port of Long Beach is also hoping for less traffic, and is expected to see cargo volumes drop by about 20% later this year.
“About 63-64% of the imports of cargo coming through the port of Long Beach are from China,” said Mario Cordero, the port’s CEO.
Cordero also said he is worried about the impact of the job as L.A. port authorities hope for a decline in employment opportunities.
“Our dock workers rely on cargo volume,” said Long Beach Port CEO. “If you look at the context of supply chains across the US, either directly or indirectly coming as a result of cargo from Long Beach Port, that’s 2.6 million people.”
Officials at the Port of Los Angeles also estimate that around 1 million jobs are linked to the port.
China’s 84% retaliation tariffs are also concerning port officials, particularly when it comes to supporting the agricultural sector.
“American farmers don’t have an 80% margin,” said the executive director of LA Port. “Freights such as soybeans, red wheat, corn, and alfalfa will likely be supplied by Asian trading partners from various Latin America countries.”
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