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Yahoo
12-05-2025
- Business
- Yahoo
LA's bustling ports hit by Trump tariffs: ‘Everyone in the US will feel this'
Southern California may be known for celebrities and glitz, but the true action has long been about 40 miles away from Hollywood, in a place where high-visibility coveralls and hardhats dominate. For the past 25 years, the San Pedro Bay port complex – comprising the Port of Los Angeles and the Port of Long Beach – has been the celebrity of the shipping world and an economic driver of California's huge economy. The busiest seaport in the western hemisphere and one of the busiest in the world, approximately 15,000 longshore workers usually pull shifts around the clock, moving billions of dollars' worth of cargo in cars, agriculture, auto parts, toys, clothes and furniture. This week, however, the port is shining a little less brightly. As a result of the Trump administration's decision to subject imports to a minimum 10% tariff (and levies far higher for goods from 57 countries), roughly a third of the traffic at the port has ground to a halt, according to Eugene Seroka, the chief executive officer of the Port of Los Angeles. With more than 70% of the port workforce living within a 10-mile radius of the complex, LA's waterfront communities of San Pedro, Wilmington and Long Beach are expected to be the first hit by the slowdown, but they will certainly not be the last, said Gary Herrera, president of International Longshore and Warehouse Union (ILWU) local 13. 'One in every five jobs in southern California is tied to the ports – warehouse workers, truck drivers, logistic teams and more,' said Herrera, who has been a longshore worker since 1998. Herrera says LA's Inland Empire, including Riverside and San Bernardino, which serve as warehousing centers for retailers such as Walmart and Amazon, as well as communities such as Bakersfield and Barstow, which have freight rail lines, will also be severely affected. What happens in the port doesn't stay in the port, echoed the longtime labor activist and former Los Angeles harbor commissioner Diane Middleton. 'One way or the other, cargo that comes in here goes to all 435 US congressional districts. Everyone in the US will feel this.' The port, which handles 40% of all containerized imports into the country, is widely seen as a bellwether for the entire US economy. For months leading up to the election and inauguration, the docks were abuzz. Large retailers especially were front-loading – stocking up on merchandise in fear of what might be to come. Now that the tariffs are here, experts say the front-loaded stock will only last six to eight weeks. Trump, who meted out the harshest tariffs to China, Vietnam and Cambodia, has referred to his 2 April announcement as 'liberation day'. To those immediately affected, however, chaos and anxiety are better ways to describe it. Trump has made dizzying statements, sometimes even suggesting certain tariffs may not last, Middleton noted. 'He's saying, 'I'm negotiating 200 deals. There'll be a deal with China in no time,'' said Middleton. 'And the Chinese are saying, 'We're not talking to anybody.' So there are contradictions, and who do you believe?' Vivian Malauulu, a night-shift longshore worker, believes what she sees. 'When ships are docked on our berths, we're busy – there's manning, dispatch activity, job orders and 24-hour operations across day, night, and what we call 'hoot' shifts.' Now there are 'fewer imports, and fewer vessels calling at our terminals', said Malauulu, who is also a local 13 officer. Workers who previously clocked full work-weeks have already been slashed to three or four shifts. She and co-workers, all accustomed to good-paying union jobs, are now tightening their purse strings – eliminating luxuries like family outings and entertainment. 'There's definitely concern on the docks,' said Malauulu. The west coast-based ILWU has a long history of backing progressive ideas. The ILWU vice-president Brandi Good, along with a handful of other labor union representatives, spoke briefly at Bernie Sanders' recent 'Standing Up to Oligarchy' rally in downtown Los Angeles. But Malauulu said that not all individual members rebuffed Trump. Neither did the ILWU's counterpart on the east coast – the International Longshoremen's Association (ILA). The ILA president, Harold Daggett, had a well-publicized visit with Trump at Mar-a-Lago. 'Some members, like many working-class Americans across the country, were drawn to Trump because he sounded like he was speaking directly to them,' said Malauulu. Messaging about 'bringing jobs back', being 'tough on China' and protecting American industries felt like it aligned with labor values, she said. Malauulu says too many people did not take the time to really dig into Trump policies and the potential effects. Now they are experiencing the result. Herrera hopes, however, that the focus among port workers can remain on strength and unity. Because of California's location, the ports here get more traffic from Asia. But all US ports and longshore workers will be negatively affected. They need to stick together, he says. 'We are the most resilient workforce in the world. During the Covid pandemic, we kept moving the world's cargo because we couldn't work remotely. Now, with this situation, we're all just hoping that there's some type of resolve because at the end of the day it's about the American worker, the blue-collar worker, that's being hurt – and the consumer and the communities.' The situation on the waterfront, however, does not appear to be resolving any time soon. In mid-April, the Trump administration announced new rules that will also phase in port fees on many ships built in China. Jamieson Greer, the head of the Office of the United States Trade Representative (USTR), which formulated the rules, said the fees were designed to 'reverse Chinese dominance, address threats to the US supply chain and send a demand signal for US-built ships'. The USTR action says that in the first phase, the charge will be $50 per net ton per US voyage, increasing incrementally to $140 per net ton by 17 April 2028. The fees, which could amount to millions, will be charged up to five times per year per vessel. The charges have been dialed back since they were first floated by the Trump administration and there may be additional carve-outs, but Beijing has nonetheless vowed to retaliate. The Port of Los Angeles and the Port of Long Beach have tripled the number of projected blank sailings – or canceled ships. The ports are projecting 30 combined blank sailings for this month, up from 10 in April. 'The men and women of the ILWU are strong and resilient. We are accustomed to peaks and valleys so, for now, we're just trying to remain as positive as we can,' said Herrera. 'If and when the work comes back, we'll be here.'
Yahoo
11-05-2025
- Business
- Yahoo
Trump Commerce Secretary to People Out of Work Due to Tariffs: ‘Be Optimistic, the President Truthed it Out'
Dock workers and truckers who are out of work or worried about their jobs because China's trade with the U.S. is coming to a grinding halt 'should be very optimistic and positive, because the president truthed it out,' Commerce Secretary Howard Lutnick said Sunday. Lutnick on his message to dockworkers who are out of work: "You should be very optimistic and positive, because the president truthed it out, and I rely on the president." — Aaron Rupar (@atrupar) May 11, 2025 Since the punishing 145 percent tariffs on China's imports to the U.S. went into effect, ports on the West Coast have seen plummeting cargo volume. Trump has said that is 'a good thing.' 'That's good… That means we lose less money,' the president said last week in the Oval Office when a reporter asked about workers concerned that trade has sharply decreased. 'When you say it slowed down, that's a good thing, not a bad thing,' Trump added. Reporter: 'The ports here in the U.S., the traffic has really slowed.'Trump: 'That's good.'Reporter: 'Now thousands of dock workers and truck drivers are worried about their jobs.'Trump: '…When you say it slowed down, that's a good thing, not a bad thing.' — The Bulwark (@BulwarkOnline) May 8, 2025 Fewer shipments means less work for those who transport imported goods — like dockworkers and truck drivers. And they're already feeling the pinch. 'Just today, we had some what north of 235 members who sought work but were not able to get it,' Sal DiContanza, port liaison for the International Longshore and Warehouse Union, told NBC Los Angeles on Friday. 'It's beginning to manifest itself as a real loss of jobs and income from our members.' While Lutnick said these American workers should stay 'optimistic,' he also said that they can expect the tariffs to stay into the 'foreseeable future.' 'We do expect a 10% baseline tariff to be in place for the foreseeable future — but don't buy the silly arguments that the U.S. consumer pays,' Lutnick said on CNN's State of the Union on Sunday. When host Dana Bash told Lutnick 'the cost of tariffs are paid by American consumers,' the secretary responded, 'Well, I disagree with that, you know.' 'Most economists, I would say, disagree with you on that,' Bash said. 'And we have seen it being passed off time and time again to the American consumer.' Bash is right. Economists largely agree that tariffs are paid by American companies importing the goods to the U.S., and those companies typically pass on the added expense to consumers by raising prices. One study on the tariffs that Trump imposed during his first term found that U.S. consumers paid the cost of tariffs in the form of higher prices on washing machines, solar panels, aluminum, steel, and goods coming from China and the European Union. That caused a net loss of $114 billion for companies and consumers as well as a $16 billion loss to the U.S. economy. Another study by economists on Trump's first term tariffs concluded that 'U.S. tariffs continue to be almost entirely borne by U.S. firms and consumers.' Already, consumers are seeing higher price tags on imported goods due to Trump's tariffs. But Trump administration officials have tried to paint a rosier picture like Lutnick or dodged questions about rising prices altogether. Testifying to Congress last week, Rep. Mark Pocan asked Treasury Secretary Scott Bessent who pays for tariffs. Bessent hemmed and hawed before saying the answer was 'very complicated.' The U.S. and China are currently engaged in trade talks in Switzerland. Bessent said on Saturday night that there has been 'substantial progress' in the talks, while Trump said that the two parties achieved a 'total reset … in a friendly, but constructive, manner.' As Rolling Stone reported, despite the administration's outward optimism, in private, Trump officials and others working in Republican politics have been stockpiling goods in anticipation of shortages. Economists have cautioned that an ongoing global trade war will slow global economic growth and could put the U.S. into a recession. Federal Reserve Chairman Jerome Powell has warned that Trump's tariffs could cause increased inflation and rising unemployment. 'The effects on inflation could be short-lived, reflecting a one-time shift in the price level. It is also possible that the inflationary effects could instead be more persistent,' he said. More from Rolling Stone Trump Administration Preparing to Accept Luxury Jet from Qatar's Royal Family: Report Dem Crypto Ally Defends Fundraiser With Trump Crypto Donor 'SNL' Weekend Update Shuts Down 'Woke' Pope Complaints, Trashes Trump's Alcatraz Revival Best of Rolling Stone The Useful Idiots New Guide to the Most Stoned Moments of the 2020 Presidential Campaign Anatomy of a Fake News Scandal The Radical Crusade of Mike Pence


The Guardian
04-05-2025
- Business
- The Guardian
LA's bustling ports hit by Trump tariffs: ‘Everyone in the US will feel this'
Southern California may be known for celebrities and glitz, but the true action has long been about 40 miles away from Hollywood, in a place where high-visibility coveralls and hardhats dominate. For the past 25 years, the San Pedro Bay port complex – comprised of the Port of Los Angeles and the Port of Long Beach – has been the celebrity of the shipping world and an economic driver of California's massive economy. The busiest seaport in the western hemisphere and one of the busiest in the world, approximately 15,000 longshore workers usually pull shifts around the clock, moving billions of dollars' worth of cargo in cars, agriculture, auto parts, toys, clothes and furniture. This week, however, the port is shining a little less brightly. As a result of the Trump administration's decision to subject imports to a minimum 10% tariff (and levies far higher for goods from 57 countries), roughly a third of the traffic at the port has ground to a halt, according to Eugene Seroka, the chief executive officer of the Port of Los Angeles. With more than 70% of the port workforce living within a 10-mile radius of the complex, LA's waterfront communities of San Pedro, Wilmington and Long Beach are expected to be the first hit by the slowdown, but they will certainly not be the last, said Gary Herrera, president of International Longshore and Warehouse Union (ILWU) local 13. 'One in every five jobs in southern California is tied to the ports – warehouse workers, truck drivers, logistic teams and more,' said Herrera, who has been a longshore worker since 1998. Herrera says LA's Inland Empire, including Riverside and San Bernardino, which serve as warehousing centers for retailers such as Walmart and Amazon, as well as communities such as Bakersfield and Barstow, which have freight rail lines, will also be severely affected. What happens in the port doesn't stay in the port, echoed long-time labor activist and former Los Angeles harbor commissioner Diane Middleton. 'One way or the other, cargo that comes in here goes to all 435 US congressional districts. Everyone in the US will feel this.' The port, which handles 40% of all containerized imports into the country, is widely seen as a bellwether for the entire US economy. For months leading up to the election and inauguration, the docks were abuzz. Large retailers especially were front-loading – stocking up on merchandise in fear of what might be to come. Now that the tariffs are here, experts say the front-loaded stock will only last six to eight weeks. Trump, who meted out the harshest tariffs to China, Vietnam and Cambodia, has referred to his 2 April announcement as 'liberation day'. To those immediately affected, however, chaos and anxiety are better ways to describe it. Trump has made dizzying statements, sometimes even suggesting certain tariffs may not last, Middleton noted. 'He's saying, 'I'm negotiating 200 deals. There'll be a deal with China in no time,'' said Middleton. 'And the Chinese are saying, 'We're not talking to anybody.' So there are contradictions, and who do you believe?' Vivian Malauulu, a night-shift longshore worker, believes what she sees. 'When ships are docked on our berths, we're busy – there's manning, dispatch activity, job orders, and 24-hour operations across day, night, and what we call 'hoot' shifts.' Now there are 'fewer imports, and fewer vessels calling at our terminals', said Malauulu, who is also a local 13 officer. Workers who previously clocked full work-weeks have already been slashed to three or four shifts. She and co-workers, all accustomed to good-paying union jobs, are now tightening their purse strings – eliminating luxuries like family outings and entertainment. 'There's definitely concern on the docks,' said Malauulu. The west coast-based ILWU has a long history of backing progressive ideas. ILWU vice-president Brandi Good, along with a handful of other labor union representatives, spoke briefly at Bernie Sanders' recent 'Standing Up to Oligarchy' rally in downtown Los Angeles. But Malauulu said that not all individual members rebuffed Trump. Neither did the ILWU's counterpart on the east coast – the International Longshoremen's Association (ILA). ILA president Harold Daggett had a well publicized visit with Trump at Mar-a-Lago. 'Some members, like many working-class Americans across the country, were drawn to Trump because he sounded like he was speaking directly to them,' said Malauulu. Messaging about 'bringing jobs back', being 'tough on China' and protecting American industries felt like it aligned with labor values, she said. Malauulu says too many people did not take the time to really dig into Trump policies and the potential effects. Now they are experiencing the result. Herrera hopes, however, that the focus among port workers can remain on strength and unity. Because of California's location, the ports here get more traffic from Asia. But all US ports and longshore workers will be negatively impacted. They need to stick together, he says. 'We are the most resilient workforce in the world. During the Covid pandemic, we kept moving the world's cargo because we couldn't work remotely. Now, with this situation, we're all just hoping that there's some type of resolve because at the end of the day it's about the American worker, the blue-collar worker, that's being hurt – and the consumer and the communities.' The situation on the waterfront, however, does not appear to be resolving any time soon. In mid-April, the Trump administration announced new rules that will also phase in port fees on many ships built in China. Jamieson Greer, the head of the Office of the United States Trade Representative (USTR), which formulated the rules, said the fees are designed to 'reverse Chinese dominance, address threats to the US supply chain and send a demand signal for US-built ships'. The USTR action says that in the first phase, the charge will be $50 per net ton per US voyage, increasing incrementally to $140 per net ton by 17 April, 2028. The fees, which could amount to millions, will be charged up to five times per year per vessel. The charges have been dialed back since they were first floated by the Trump administration and there may be additional carveouts, but Beijing has nonetheless vowed to retaliate. The Port of Los Angeles and the Port of Long Beach have tripled the number of projected blank sailings – or canceled ships. The ports are projecting 30 combined blank sailings for this month, up from 10 in April. 'The men and women of the ILWU are strong and resilient. We are accustomed to peaks and valleys so, for now, we're just trying to remain as positive as we can,' said Herrera. 'If and when the work comes back, we'll be here.'


Fibre2Fashion
01-05-2025
- Business
- Fibre2Fashion
US' ILWU slams tariffs as 'economic war on workers' amid tariff war
International Longshore and Warehouse Union (ILWU) has strongly condemned the Trump administration's newly imposed tariffs, calling them a direct attack on the American working class. In a sharp rebuke, the union warned that the tariffs—described as reckless and shortsighted—are harming key economic sectors. Condemning the tariffs, ILWU said, 'Tariffs are taxes. These and other reckless, shortsighted policies have begun to devastate American workers, harm critical sectors of the economy, and line the pockets of the ultra-wealthy at the expense of hardworking families. The tariffs have also sown distrust among our allies and inflamed geopolitical tensions. These tariffs are nothing more than a direct attack on the working class and should be opposed outright.' The ILWU has strongly condemned the US tariffs on Chinese importsâ€'now at 145 per centâ€'calling them an economic assault on working families. It warned of job losses, rising costs, and worsening inequality. Highlighting Ocean Network Express cancelling a shipping route and surging construction costs, the union argued tariffs do little to balance trade but instead burden consumers. US' imposition of tariffs on China instigated a de facto trade war, with the former imposing a staggering 145 per cent tariff on all Chinese imports and China retaliating with a 125 per cent tariff on all US imports. Hundreds of thousands of jobs are either directly or indirectly tied to global trade. Escalating trade tensions and tariff measures between the United States and China—the world's two largest economies—pose a serious threat to employment within the global supply chain, the ILWU said in a press release. Citing a recent example, the ILWU highlighted that Ocean Network Express cancelled one of its shipping routes last week in direct response to the imposed tariffs. In addition, the broader ripple effects—such as surging fuel prices and escalating costs of construction materials—have already resulted in workforce reductions, as American businesses grapple with the mounting pressures of an increasingly volatile trade environment. According to some economic estimates, families will be forced to pay $1,600 more per year on basic goods and services due to these tariffs. 'Everyone knows that the United States is currently in a housing crisis, with sky-high rents and homeownership completely out of reach for millions of Americans. Tariffs that increase the costs of construction will only accelerate this crisis,' added the release. The union argued that despite official claims, experience shows that the burden of tariffs is ultimately borne by American workers. Referencing the US-China trade actions of 2018 and 2019, the ILWU noted that those tariffs failed to significantly alter the trade balance between the two nations. Instead, they led to higher import costs, which were passed on to US consumers. 'Corporations and foreign countries will pass on costs to consumers while they continue to rake in record profits. Meanwhile, families struggling to get by are being hit with higher grocery bills, unaffordable car payments, and soaring costs for everyday necessities,' said ILWU. Labelling it a false 'America First' strategy, the union said the tariffs will destroy jobs, raise costs, and fuel instability. Instead, it called for fair trade policies that prioritise workers, protect union jobs, and ensure economic justice—not policies driven by political whims. Fibre2Fashion News Desk (SG)
Yahoo
29-04-2025
- Business
- Yahoo
West Coast Port Union Slams Trump's ‘Reckless, Shortsighted' Tariff Policy
As cargo entering major U.S. West Coast ports starts to slow down amid a deceleration in Chinese imports, the union representing dockworkers across the ocean freight hubs has made its opinion clear on where is stands on President Donald Trump's tariffs. In a notice posted Monday, the International Longshore and Warehouse Union (ILWU) said it 'unequivocally condemns' the recent tariffs the Trump administration has slapped on U.S. trade partners, calling them 'reckless' and 'shortsighted.' More from Sourcing Journal UPS Slashes 20,000 Jobs as it Weans Off Amazon White House Calls Amazon's Reported Tariff Transparency Plans a 'Hostile and Political Act' How to Achieve 'Smooth Sailing' Amid Tariff Turbulence The statement echoes many of the complaints the tariffs' detractors have shouted since April 2, when the president first imposed country-specific reciprocal tariffs on dozens of countries, before pushing those duties back 90 days to make room for 10-percent baseline duties. 'Tariffs are taxes' that 'have begun to devastate American workers, harm critical sectors of the economy and line the pockets of the ultra-wealthy at the expense of hardworking families,' said the ILWU. 'The tariffs have also sown distrust among our allies and inflamed geopolitical tensions. These tariffs are nothing more than a direct attack on the working class and should be opposed outright.' The union was critical of the 145-percent tariffs imposed on China, which has been the primary instigator for the slowing of imports. Roughly 45 percent of the cargo ending at the Port of Los Angeles typically originates in China, while a higher percentage (65 percent) goes to sister port Long Beach. On Tuesday, L.A. port executive director Gene Seroka reiterated that there would be steep 35 percent annual import volume declines for the week of May 4-10 as more blank sailings occur on the trans-Pacific trade lane and ocean carriers scrap services on the route. In its notice, the union highlighted one such example, in which Ocean Network Express (ONE) announced the cancellation of one of its shipping routes that was scheduled to launch in May. In total, six trans-Pacific lines have been withdrawn since February, most notably an Asia-to-Northwest U.S. and Canada service from Mediterranean Shipping Company's (MSC). These blank sailings and scrapped services were driven by mass cancellations and postponements from U.S. importers that did not want to pay tariffs on products once they reached American soil. ILWU workers have plenty of skin in the game that would influence their opinion of the tariffs. With the expected plummeting of imports, U.S. port activity is expected to suffer, which could trickle down to the dockworkers themselves. The ILWU brass said the constricted trade could lead to 'devastating' job losses for supply chain workers. Beyond direct impacts, the union pointed to knock-on effects of these tariffs, like rising fuel costs and increased costs of construction materials. The union claims the indirect impacts have already led to layoffs as American businesses struggle to adapt. Trucking companies, for example, are starting to see the damage as they pick up lower volumes out of the West Coast and generate fewer revenue amid the elevated costs. Citing a House Joint Economic Committee report in March, the ILWU said families will be forced to pay $1,600 more per year on basic goods and services like food, gas and household goods due to the tariffs. The union also took another shot at Trump's trade policy by saying it was 'America First' in name only, and that would 'fuel economic instability that will ripple through every community in this country.' 'It is undeniable that decades of free trade agreements have negatively impacted American workers and prioritized corporate profits at the expense of good paying, union jobs in America,' the policy statement read. 'However, this haphazard and destructive tariff plan is a sad excuse for a 'fair trade' policy. We demand fair trade policies that put working class Americans first, protect jobs, and reduce taxes on the American people, not trade policies dictated by a president's whims.' The ILWU's international executive board unanimously passed the official policy statement four days before the notice was posted on the union's website and social media pages. The 42,000-member union also released a second statement reiterating that working people must have the right to unionize and collectively bargain. 'These rights belong to all workers, whether they work in the private or public sector,' the note said. 'Recent attacks on public sector union members in this country must be opposed outright by the entire labor movement.'