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Port of L.A. officials worry the return of high tariffs next week could weaken regional economy
Officials at the Port of L.A. are nervously watching Tuesday, July 8, on their calendars. That’s when a 90-day pause by the White House on double digit tariffs on goods from major U.S. trade partners is set to end.
President Donald Trump has been non-committal about extending the pause, but said this weekend he was expecting the tariffs to come into effect, unless trade deals were done before then.
Business at the port complex, the biggest in the U.S., had already dropped because of Trump’s trade war in the spring.
“Imports coming in were down about 20% in May, coming from Asia ... into Los Angeles compared to the prior month,” said Phillip Sanfield, spokesperson for the Port of L.A.
Even though major tariffs were paused, Sanfield said, U.S. businesses made fewer purchases from China and other countries because of the expected higher prices caused by tariffs.
The drop in traffic has led to less work on the docks.
“It's being felt in the pocketbook by the dock workers and waterfront workers throughout the port complex,” including truckers, Sanfield said.
It's being felt in the pocketbook by the dock workers and waterfront workers throughout the port complex.
The Port of L.A. handled more than $26 billion in trade through its facilities in April of this year. The vast majority of that is imports from Pacific Rim countries. China accounted for 27% of that trade value. Japan and Vietnam are behind China; together the two countries account for about 30% of the value of products coming through the port.