America's Busiest Ports Issue 'Dire' Warning Over Trump Tariffs

Newsweek

06-05-2025

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
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America's busiest ports are seeing a drastic decline in shipments as a result of President Donald Trump's tariffs, with significant implications for consumers as well as the U.S. logistics sector.
"We are at a point of inflection. It's kind of dire," Mario Cordero, Port of Long Beach CEO, told NBC on Monday. "What happens here is going to be an indication of what's going to occur in the supply chain. We have less vessel calls, less cargo now."
Why It Matters
The impact of Trump's tariffs on transpacific shipments is already expected to result in higher retail prices for foreign made goods, particularly those from China—still subject to a 145 percent import tax—and elicited warnings that shoppers could soon face empty shelves.
In addition, the reduction of goods arriving on U.S. shores has also raised concerns that this could have a serious consequences for global supply chains as well as America's supply chain-dependent industries.
What To Know
Cordero told NBC that the decline in traffic was reminiscent of the COVID-era disruptions. Similar circumstances are being felt at the neighboring Port of Los Angeles, where scheduled shipments are down 35 percent year-on-year this week, according to the Port Optimizer data platform.
The two ports, which together account for a significant portion of containerized imports to the U.S., have seen traffic decline nearly 50 percent, NBC reported, citing port officials.
"You could hear a pin drop," said Port of Los Angeles Director Gene Seroka last week. "It's very unusual."
Container ships moored at the Port of Los Angeles in Los Angeles Tuesday, April 15, 2025.
Container ships moored at the Port of Los Angeles in Los Angeles Tuesday, April 15, 2025.
Damian Dovarganes/AP Photo
Seroka told AFP that importers, especially those supplying the retail sector, had only enough inventory to cover the next five to seven weeks, and that the effect for American consumers would be "less choice and higher prices."
On Sunday, on an episode of Bloomberg Surveillance, Seroka said that this decline in shipments will also likely translate into job losses. "Every four containers means a job," he said. "So when we start dialing back, it means less job opportunity."
In addition to dockworkers, the impact of a sustained drop in shipments be felt by freight forwarders, warehouse employees, as well as truck drivers.
Import-related layoffs have surged since the beginning of April, with over 1,800 job cuts announced across the Southeast, according to supply chain-focused outlet FreightWaves.
What People Are Saying
Rudy Diaz, CEO of trucking company Hight Logistics, told NewsNation: "After six months, I would say we would be in pretty dire situations, and that's just us, and there are hundreds of companies like us who would most likely be in a similar situation, if not worse."
Port of Los Angeles Director Gene Seroka told AFP last week: "American importers, especially in the retail sector, are telling me that they have about five to seven weeks of normal inventory on hand today."
"Many retailers and manufacturers alike have hit the pause button, stopping all shipments from China," he added.
Former Los Angeles Harbor Commissioner Diane Middleton said impacts would be felt across the U.S., telling The Guardian: "One way or the other, cargo that comes in here goes to all 435 U.S. congressional districts."
Political economist Veronique de Rugy told Newsweek previously that a significant drop in transpacific shipments "means that a wide range of American industries—not just retail, but also manufacturing, transportation, warehousing, and wholesale sectors—will feel the consequences."
She continued: "Most of what we import are inputs used in domestic production. It means higher costs for domestic companies. When fewer goods come in, truck drivers, dockworkers, warehouse employees, freight handlers, and even many small businesses that depend on imported inputs are directly at risk. Jobs tied to moving and selling goods, from logistics to last-mile delivery, will feel the pressure first."
Small business owner Beth Benike told Newsweek last week that her inability to pay the new import taxes had left two to three months of inventory trapped in China.
What Happens Next
The administration has expressed optimism that it can soon reach a deal with China which would bring the tariffs on its imports down. While Beijing has repeatedly denied its interest in negotiating with the U.S., the country's foreign ministry on Friday said it was "evaluating" Washington's offer.