The domino effect of Trump's tariffs begins to hit Port of LA

It was good news through the Port of L.A.’s rear-view mirror. April’s volume in the port was the best it’s been in a long time.

“This ranks as our third best April on record, surpassed only by the pandemic,” said Port of L.A. Executive Director Gene Seroka in his monthly update on Monday.

But what he sees ahead doesn’t look good.

Much of the traffic in April was retailers and manufacturers bringing in cargo before high tariffs kick in.

For the month of May, 80 or so sailings were expected to arrive in Los Angeles, but 17 of those have been canceled and 10 cancellations remain on the books for the month of June, Seroka said.

Seroka’s briefing made clear that the ripple effect of the Trump administration’s unleashing of tariffs on foreign-made goods has reached the entry point of imports, and will likely lead to fewer jobs and higher prices.

Effects on dock workers and beyond

The 30% decline in container traffic during the first week of May had an immediate effect on the docks.

Container ships are unloaded at The Port of Los Angeles on Sept. 7, 2024.

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Photo by Paul Harris/Abaca, Sipa USA

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AP Photo

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“Less cargo means fewer job opportunities,” Seroka said.

Tens of thousands of Longshore workers operate the cranes that unload containers from ships, drive the trucks that move the containers, and do other port-related work.

“From the number of labor gangs that are out there responding to the shift requirements of cargo to the truckers and the warehouse workers, the impact was felt almost immediately during that first week of May,” Seroka said.

He estimates there were hundreds fewer people working on the docks the Friday of the first week of May because of the cargo slowdown.

Business through the Port of L.A. affects nearly 500,000 jobs in the five-county Southern California region.

Tariffs may sour consumers tastes

The most common products coming through are furniture, car parts and clothes. Consumers can also expect some of the many food products that arrive at the port to start costing more.

“Coffee, juice concentrate, avocados, bananas, have all been hit by tariffs and we'll see that [price increase] at the grocery store as well,” Seroka said.

President Donald Trump raised those and other tariffs in an effort to increase the amount of goods the U.S. exports. However, exports out of the Port of L.A. were down 3.5% last month compared to last year. The most common exports out of the port are recyclable paper, pet and animal feed and soybeans.

The reasons for the trade deficit with China are complex, but Trump’s trade war has already reduced imports from the country. China is by far the largest trade partner with the Port of L.A., accounting for about 60% of business with the port. But that’s gone down to 45% amid tougher U.S. trade policies, according to the port.