Tariffs Trigger Downturn at POLB

Port officials and workers say that the Ports of Los Angeles and Long Beach are experiencing a significant slowdown following the imposition of new tariffs by the Trump administration. The downturn is already impacting jobs and businesses surrounding the port complex, and experts warn it could soon affect consumers nationwide through potential shortages and higher prices.

The Port of Long Beach, which handles nearly 15 percent of all shipping containers bound for the U.S., is anticipating a substantial reduction in business in the coming months. Port of Long Beach Executive Director Mario Cordero described the situation as a “critical point.” He told Newsweek that he expects reduced business somewhere in the neighborhood of 35%, potentially reaching as much as 40%, due to tariff uncertainty.

The immediate impact is evident in the sharp decline of cargo volume moving through the two ports. The Port of Los Angeles had a 35% drop in imports during the first week of May compared to last year. This drop is primarily attributed to increased tariffs against Chinese goods.

The San Pedro Bay complex, comprising the Ports of Los Angeles and Long Beach, which handles approximately 31% of everything that enters or leaves the U.S. in shipping containers, is seeing significant drops in cargo ships.

A key indicator of this slowdown is the wave of canceled ship sailings. In industry terms, these are called “blank sailings.” Cordero reported that the Port of Long Beach has had 34 canceled sailings scheduled through the end of June. The nearby Port of Los Angeles has seen another 36 sailings dropped, bringing the total for the San Pedro Bay complex to 70 missed shipments.

Port officials indicated that more than 30 scheduled ship arrivals would be skipped at the two ports in May, leaving about 400,000 containers out of the supply chain. For perspective, the Port of Long Beach typically plans for about 17 vessel arrivals in a given week, but only three or four were expected.

This decline in volume has an immediate and direct effect on the thousands of workers who depend on the ports for their livelihoods. Unionized longshore workers gather outside the International Longshore and Warehouse Union Local 13 dispatch office each weekday, hoping for work. Many left empty-handed on a recent Tuesday morning.

Charlie Camacho, a longshore worker whose job involves loading and unloading shipping containers, told NPR, “Less volume of cargo containers means less work for us. So we feel it, we definitely feel it.”

Gary Herrera, president of ILWU Local 13, confirmed that union members are anxious, and some of the workforce will not be getting their full 40 hours a week based on cargo loss. He stated that job loss is a concern, calling it a “ripple effect of not having work at the waterfront.”

Danny Vilicich, President of the Marine Clerk’s Union, also said that members of the ILWU would soon see fewer hours, not working as much as they are accustomed to. Nearly 10,000 workers feel the increased tariffs’ impact.

The effects ripple outward to businesses connected to the ports in Southern California. Independent salesman Frank Groves, who sells gloves and safety gear to port workers, said his company has dropped nearly 75 percent recently.

“No sales at all really. If they aren’t working I don’t make money,” he told NPR. These businesses that work in the same industry as the ports, such as trucking, shipping, and distribution centers, will likely feel the immediate impact.

The tariffs, some as high as 145 percent on certain goods from China, have effectively caused trade between the U.S. and China to stop. In response, China has imposed a 125 percent tax on U.S. exports.

Mario Cordero noted this is a “no-win situation” in a trade war, impacting both countries’ economies. Gene Seroka, executive director of the Port of Los Angeles, reported that retailers and large importers are telling him directly that they have “all but stopped imports from China” due to the cost.

The Trump administration has defended the tariffs, suggesting that keeping at least some in place is necessary to convince businesses to move production to the United States. President Trump stated he wouldn’t rule out the possibility that tariffs might stick, explaining that if companies thought they would come off the table, they wouldn’t build in the United States.

He also views the tariffs as leverage in renegotiating trade terms and boosting domestic manufacturing. His policies on tariffs have led to several companies announcing plans to invest in American manufacturing, such as Nvidia, the AI-accelerated computing and graphics components company, planning to invest $500 billion in American manufacturing over the next four years.

President Trump has said his policies on tariffs are in response to the country yielding “TRILLIONS OF DOLLARS IN SUBSIDIZING OTHER COUNTRIES,” and the potential downturn “WILL ALL BE WORTH THE PRICE THAT MUST BE PAID.” However, President Trump has also said it would be impractical to keep tariffs on China at their current rates, stating he would lower them at some point because otherwise, business could not be done with them.

Given the potential for shortages and higher prices, Mario Cordero offered direct advice to anxious consumers: consider purchasing items that could face high tariffs before July 2nd, when a 90-day suspension on steep new tariffs targeting Chinese imports expires. Despite the current challenges, Cordero maintains a degree of optimism, expressing hope that the tariff policy is primarily used as a negotiation tool rather than representing a permanent endpoint.

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