In May, the Port of Los Angeles, the busiest container hub in the U.S., saw cargo volume slump by 35% year over year as the first shipments of goods from the Chinese mainland hit by tariffs of up to 145% began arriving.
Gene Seroka, executive director of the port, told CNN that while 80 ships were expected in May, 20% of sailings were canceled as U.S. companies scaled back orders in response to higher import costs. "Products now cost about two and a half times more than they did just last month," Seroka explained.
More than cargo numbers are at stake: every 1% drop in volume translates to roughly 2,800 fewer jobs in Southern California, according to economic modeling by CTOL Digital Solutions. With volumes down 35%, as many as 98,000 jobs could be on the line, threatening the livelihoods of an estimated 900,000 regional workers.
At the docks, International Longshore and Warehouse Union member Sal DiCostanzo highlighted unusually empty berths and warned that many residents remain unaware of the stakes. "This situation hits home for communities across the country," he said.
Local businesses are feeling the pinch, too. One cafe owner reported that 80% of her patrons were once dockworkers, and her shop now stands nearly empty. She put it bluntly to policymakers: "Where are the jobs you promised?"
Logistics CEO Ryan Petersen of Flexport told CNN that if importers refuse to absorb the costs, deliveries could plunge by 60%. "A 60% decline in containers means 60% less stuff arriving," he noted. As retailers exhaust existing stockpiles, consumers can expect shortages and price spikes within weeks.
The National Retail Federation projects U.S. imports to drop at least 20% year over year in the second half of 2025. While the shelves may not run completely bare, Seroka predicts fewer choices and steeper prices. "You may find plenty of pants, but not the exact type you want—or at the price you expect," he said.
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U.S. tariffs hit LA Port hard, raising job and cost concerns
cgtn.com
