The head of the Port of Los Angeles, the busiest U.S. port, has indicated that the recent tariff truce between Washington and Beijing is unlikely to lead to a significant surge in imports. Gene Seroka, executive director of the port, stated that while there may be a slight increase in bookings from Asia, it will be attributed to importers acquiring cargo manufactured before the U.S. imposed a 145% tariff last month. This adjustment temporarily reduced the duty to 30%.
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According to data from the IndexBox platform, the Ports of Los Angeles and Long Beach, which together handle 31% of U.S. sea trade, are crucial indicators of the nation’s economic activity. As the primary gateway for trade with China, these ports process a wide array of goods, from toys and apparel to auto parts and raw materials. The recent tariff escalation had previously led to a sharp decline in bookings, with 74 container ships arriving in the first half of May, 11 fewer than usual, suggesting a significant drop in import volumes for the month.
Port of Long Beach CEO Mario Cordero projected a decline of over 10% in May imports, echoing concerns about the broader impact on consumer prices. With retail demand driving nearly half of container shipping volume, the increased costs due to tariffs are expected to be passed on to U.S. consumers. Walmart, the country’s largest retailer, announced plans to raise prices at the end of May and reduce orders for goods that consumers are unwilling to pay more for.
