LA’s bustling ports hit by Trump tariffs: ‘Everyone in the US will feel this’

Source: https://www.theguardian.com/us-news/2025/may/04/los-angeles-ports-trump-tariffs

Summary

The Ports of Los Angeles and Long Beach are experiencing a slowdown due to lingering Trump-era tariffs. Dockworkers face reduced shifts and anxiety as cargo volumes decline, impacting their livelihoods and raising concerns about the broader US economy. These tariffs, intended to protect American industries, have increased costs, disrupted supply chains, and prompted retaliatory tariffs. The ports, handling 40% of US imports, are vital economic engines, and decreased activity affects trucking, warehousing, retailers, and consumers. Reduced cargo, job losses, and supply chain issues are compounded by a global economic slowdown and shifting consumer spending. Experts call for re-evaluating tariffs and investing in port infrastructure.

Full News Report

Here's the article: **LA’s Bustling Ports Hit by Trump Tariffs: ‘Everyone in the US Will Feel This’** Los Angeles, CA – The typically bustling Ports of Los Angeles and Long Beach, the nation’s busiest port complex and a critical gateway for international trade, are experiencing a significant slowdown. Dock workers are expressing growing anxiety as cargo volumes decline, a direct consequence, they say, of the Trump-era tariffs that continue to ripple through the global economy. The question on everyone’s mind is: How long can this continue, and what will be the long-term impact on the US economy? **The Dockworkers’ Perspective: Anxiety on the Waterfront** The whir of machinery, the shouts of foremen, and the steady hum of trucks – once the constant soundtrack of the LA ports – are noticeably muted. Dockworkers, the backbone of the operation, are feeling the pinch. Many are seeing fewer shifts, translating to smaller paychecks and growing uncertainty about the future. "We're not seeing the same amount of ships coming in," explains Marco Rodriguez, a longshoreman with 20 years of experience at the Port of Los Angeles. "Fewer ships mean less work. These [Trump] tariffs… everyone in the US will feel this, not just us on the docks." Rodriguez's sentiment echoes the concerns of many of his colleagues. The International Longshore and Warehouse Union (ILWU), representing dockworkers on the West Coast, has reported a slowdown in activity at multiple ports, attributing a significant portion of the downturn to the lingering effects of the trade war initiated under the Trump administration. **What are the Trump Tariffs and Why Are They Still Impacting the Ports?** During his presidency, Donald Trump imposed tariffs on hundreds of billions of dollars worth of goods imported from China, as well as other countries. The aim was to protect American industries, reduce the trade deficit, and pressure China to change its trade practices. However, the tariffs have had unintended consequences, including increased costs for businesses, disruptions to supply chains, and retaliatory tariffs from other nations. While some tariffs have been modified or rescinded under the current administration, many remain in place. These ongoing tariffs make imported goods more expensive, leading to reduced demand and, subsequently, lower cargo volumes at ports like those in Los Angeles. **The Ports of LA and Long Beach: A Vital Economic Engine** The Ports of Los Angeles and Long Beach, located adjacent to each other in San Pedro Bay, collectively handle approximately 40% of all containerized imports entering the United States. They are crucial economic drivers for Southern California and the nation, supporting hundreds of thousands of jobs and contributing billions of dollars to the economy. A significant decline in activity at these ports has far-reaching consequences. It affects trucking companies, warehousing businesses, retailers, and consumers across the country. The reduced flow of goods can lead to higher prices for consumers, delayed deliveries, and economic hardship for businesses reliant on international trade. ### The Impact of Reduced Traffic The implications of the tariff-induced slowdown are multifaceted and ripple through various sectors: * **Decreased Cargo Volumes:** The most immediate impact is a decrease in the number of containers being processed at the ports. This directly translates to less revenue for port operators, shipping companies, and other related businesses. The initial hope that this drop was pandemic-related and temporary is fading, replaced by concerns about a prolonged slump. * **Job Losses:** Reduced cargo volumes inevitably lead to job losses. Dockworkers are the most visible casualty, but the ripple effect extends to truck drivers, warehouse employees, and workers in related industries. The long-term impact on the local economy could be significant. * **Increased Costs for Businesses:** Tariffs increase the cost of imported goods, forcing businesses to either absorb the extra cost or pass it on to consumers. This can lead to lower profits for businesses and higher prices for consumers, impacting overall economic activity. * **Supply Chain Disruptions:** The trade war and associated tariffs have contributed to ongoing supply chain disruptions. Businesses are struggling to obtain the materials and components they need to manufacture goods, leading to delays and increased costs. This can hinder economic growth and lead to shortages of certain products. * **Retaliatory Tariffs:** The tariffs imposed by the US have prompted retaliatory tariffs from other countries, further disrupting international trade and harming American businesses. Farmers, in particular, have been severely impacted by retaliatory tariffs on agricultural products. * **Regional Economic Slowdown:** The ports are significant economic engines for Southern California. Reduced activity at the ports can lead to a regional economic slowdown, affecting businesses, employment, and overall economic prosperity. ### Related Trends and Contributing Factors While the Trump-era tariffs are a significant factor, several other trends are also contributing to the slowdown at the LA ports: * **Global Economic Slowdown:** The global economy is facing various challenges, including inflation, rising interest rates, and geopolitical instability. This has led to reduced demand for goods and services, impacting international trade and port activity. * **Shift in Consumer Spending:** As inflation persists and recession fears grow, consumers are shifting their spending habits. Spending on goods is declining, while spending on services is increasing. This shift can affect the demand for imports and impact port activity. * **Port Congestion and Delays:** While not as severe as during the height of the pandemic, port congestion and delays remain a concern. These delays can increase costs and disrupt supply chains, making it more difficult for businesses to operate efficiently. The ports are still working to fully recover from the supply chain bottlenecks caused by the pandemic. * **Competition from Other Ports:** Other ports in North America, such as those on the East Coast and the Gulf Coast, are vying for market share. These ports are investing in infrastructure and technology to attract more cargo, potentially drawing business away from the LA ports. This increased competition adds pressure on the LA ports to remain efficient and competitive. * **The Rise of Nearshoring and Reshoring:** Some companies are considering nearshoring (moving production closer to home, such as to Mexico) or reshoring (bringing production back to the United States) in response to supply chain disruptions and geopolitical risks. This trend could potentially reduce the reliance on imports from Asia and impact port activity. **What’s Next? The Future of Trade at LA’s Ports** The future of trade at the LA ports remains uncertain. While there are calls for the removal of the Trump-era tariffs to ease the pressure on businesses and consumers, political considerations make it unlikely that all tariffs will be eliminated in the near future. Efforts are underway to improve port efficiency, reduce congestion, and attract new business. The ports are investing in infrastructure upgrades, technology improvements, and workforce training programs. However, these efforts will take time to yield results. The long-term impact of the tariffs and other contributing factors on the LA ports and the US economy remains to be seen. What is clear is that the current situation is causing anxiety for dockworkers and raising concerns about the future of international trade. Experts suggest that the best course of action involves a multi-pronged approach: * **Re-evaluate Tariff Policies:** A careful review and potential renegotiation of tariff policies could help alleviate some of the pressures on businesses and consumers. * **Invest in Port Infrastructure:** Continued investment in port infrastructure is crucial to improve efficiency and reduce congestion. * **Diversify Trade Partners:** Diversifying trade partners can reduce reliance on any single country and mitigate the impact of trade disputes. * **Promote Domestic Manufacturing:** Supporting domestic manufacturing can create jobs and reduce reliance on imports. Ultimately, the future of the LA ports, and the broader US economy, depends on addressing the complex challenges facing international trade and finding solutions that promote economic growth and prosperity for all. The ripple effects of the tariffs are already being felt, and a proactive approach is needed to navigate the evolving global trade landscape and secure the long-term health of this vital economic engine.