Tariffs aren’t slowing down a soaring Long Beach Port, but consumers and businesses feel the pinch

Despite taxes on imports at levels not seen in a century, Long Beach’s seaport had a good year in 2025. And a decent January.

Port officials said Wednesday they started the new year by leading the nation in trade, responsible for moving more than 847,000 shipping containers in January — 51% of the total cargo at the San Pedro Bay Complex, which it shares with neighboring Port of Los Angeles.

In a call with reporters, Port CEO Noel Hacegaba said that despite a “fair share of doom and gloom” at the time, the seaport finished 2025 as its busiest year on record.

This comes days after President Donald Trump signed new, across-the-board tariffs on U.S. trading partners, and later added he would raise the tariffs to 15%. It’s a direct response to a recent Supreme Court decision that found his tariffs announced last April were unconstitutional.

The new tariffs would operate under a law that restricts them to 150 days, unless approved by Congress.

Asked to measure how much this will affect the seaport, traders, logistics companies and consumers, Hacegaba reiterated a word he has evoked heavily in the past 10 months: uncertainty.

“Our strong cargo volumes do not suggest we are not being affected by tariffs,” Hacegaba said, adding the Port saw a 13% decline in imports driven by major reductions in iron, steel, synthetic fibers, salt, sulfur and cement.

Economists are somewhat more confident, saying it would take nothing short of a national economic crisis to reverse the seaport’s fortunes. “Even if the market is affected, our standing at the Port of Long Beach, even compared to other ports, is strong,” said Laura Gonzalez, an economics professor at Cal State Long Beach.

But experts caution that the ruling will heap the most damage on businesses, especially smaller enterprises, as well as the average consumer who already bore the tariff’s costs last year.

Noel Hacegaba, CEO of the Port of Long Beach, held his first State of the Port in Long Beach on Thursday, Jan. 15, 2026.

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Thomas R. Cordova

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Long Beach Post

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Tariffs added $1,700 in costs to the average U.S. household, as importers raised prices to offset higher import taxes — especially on clothes, shoes and electronics from China and other Southeast Asian nations.

Consumers, Gonzalez said, should budget over the next six months “for essentials.”

Priyaranjan Jha, an economics professor at UC Irvine, said historically trade policies since 2018 have shown that for every dollar of duty imposed, consumer prices rose by about 90 cents.

Even if tariffs are reduced or reversed, and pressure is relieved on importers, consumers shouldn’t expect lower sticker prices right away, he said. “Firms do not always reduce prices as quickly as they raise them, especially if contracts or inventories are involved.”

Richer San, a former banker and business owner in Long Beach, said he’s in regular talks with shops across the city’s historic Cambodia Town that have been crushed by the increased prices of imported ingredients.

“Most of these are family-owned businesses operating on very small profit margins,” he said, adding there is little to no margin to “absorb higher costs.”

Many companies managed to avoid price increases last year in part by stockpiling inventory in the first half of the year to be sold through Christmas and the start of the year. As stock dwindles, many businesses might be less willing to eat the cost of a new set of tariffs.

Marc Sullivan, president of Long Beach-based Global Trade and Customs, said his logistics company saw a brief boom last year in ordered goods, mostly medical equipment and pharmaceuticals.

But by June, orders dropped 35%, a trend that continues today. It’s forced him to freeze any new hiring in the past year and at least through the next six months as he waits for federal officials to settle on tariffs that will determine the cost of shipped goods.

“For the companies that I work with that are importing into the state here, it’s just ‘hold on and let’s see what happens,’” he said.

“I’d like to hire a salesperson to go out and chase new business, … but it’s just a bleak outlook,” he added.

In the interim, he’s received a steady flow of calls (that started “within minutes” of the ruling) from importers looking to claim refunds or recoup their tariff expenses. The U.S. Treasury had collected more than $140 billion from tariffs enacted under emergency powers, and the Supreme Court left the decision of how to appropriate the refund proceedings to lower courts.

His response: They might be stuck waiting for a while. “Customs doesn’t pay anything back quickly,” he said. “It could be a year before you ever see anything back to you.”

Sullivan said he knows of companies that spent upwards of $20,000 per shipment for months.

“They’re going to want that money to be able to reinvest it,” Sullivan said.

But some experts say that consumers, as well as small businesses, deserve a share of refunds.

“The importer may receive a refund even though consumers bore much of the cost,” Jha said. “Courts generally refund the statutory payer, not downstream buyers, but that opens the possibility of follow-on litigation. Small businesses that directly imported goods and paid tariffs should qualify for refunds.”