The Port of Los Angeles, the busiest port in the United States, is preparing for a decline in import volumes, which is expected to begin as early as May. As the effects of punitive tariffs on imported goods continue to build, a significant drop in demand is anticipated for the second half of the year.
Gene Seroka, Executive Director of the Port of Los Angeles, spoke on April 11 during a call with reporters, stating that the port is likely to experience a 10% decrease in import volumes over the latter half of the year.
In March, the port handled approximately 385,500 loaded twenty-foot equivalent units (TEUs) of imports. This marked a modest 1.6% increase compared to the previous year, as importers sought to stockpile goods before tariffs were enforced.
Approximately 40% of goods entering the U.S. through the Port of Los Angeles come from China, and recent tariff hikes have imposed a steep 145% duty on these imports. Despite a brief announcement on April 9 regarding a 90-day pause on reciprocal tariffs, most foreign goods are still subject to at least a 10% tariff, with additional duties placed on items like steel and aluminum.
Exports through the port have also seen a decline, with a 15% drop year-over-year in loaded TEUs, totaling around 123,000 units. The reduction in exports reflects the mounting challenges faced by U.S. agricultural and manufacturing sectors, particularly as counter-tariffs, such as China’s 125% levy, begin to impact trade.
As Seroka noted, “We are staying in close contact with partners in Asia to track the impact of these changes. We expect some difficult months ahead, so businesses should be prepared for the challenges.”
Source – https://www.ttnews.com/articles/port-la-tariffs-downturn