Cargo shipments arriving at the country’s busiest port dropped 9 percent in May compared to last year amid tariff uncertainty, Port of Los Angeles Executive Director Gene Seroka said Friday.
What happened: Seroka, speaking at a media briefing, said he expects a modest uptick in imports over the next few months as retailers prepare for the fall and winter holiday seasons. However, he said overall trade flow is expected to be lower than in previous years, as businesses remain skittish about placing orders with Chinese manufacturers because of a 30 percent tariff President Donald Trump imposed recently on all goods from the country.
“We’ll likely see higher prices and fewer selections for both the back-to-school and Halloween season,” Seroka said. “And those products right now will give us a little bit less than we normally would see as far as cargo volume coming across our docks.”
Seroka said that while the Trump administration’s decision last month to reduce its overarching tariffs on China from 145 percent for 90 days and to restart trade negotiations were encouraging steps, the average tariff on Chinese goods is 55 percent when additional levies on specific products like steel are considered.
