Latest news with #PacificMerchantShippingAssociation
Yahoo
13-05-2025
- Business
- Yahoo
West Coast ports reel from Trump's tariff swings
President Donald Trump gave West Coast ports a brief reprieve Monday when he agreed to temporarily pull back from sky-high tariffs on imported goods from China — but the industry remains in choppy waters. 'This is still a crisis,' Long Beach Mayor Rex Richardson said at a press conference Monday, where port and labor leaders touted a new study showing the Port of Long Beach's jobs impact. Trump's agreement with China to lower tariffs from 145 percent to 30 percent did little to ease the growing drumbeat of unease from the shipping and logistics industries of Long Beach and Los Angeles. Together, the ports are the busiest in the nation, even discounting the dozen-odd ships that have cancelled their trips from China so far, leaving California workers with fewer shifts unloading and transporting the goods. Representatives from across the shipping and agriculture industries detailed layoffs and cancelled orders at a Monday afternoon hearing in Sacramento called by California Treasurer Fiona Ma. 'I'm just going to be really frank, I don't know what Trump is trying to do,' said Amanda Blackwood, the president and CEO of the Supply Chain Federation. 'If there is a belief that creating disruption and leverage is going to create opportunity, I love your hope. However, that's not real, right? Disruption in the market just causes disruption.' West Coast import volumes have gone up and down over the past couple of months, most recently spiking over the weekend and into Monday. Mario Cordero, the CEO of the Port of Long Beach, said it would take one to two months for the latest change in tariffs between the U.S. and China to show up in port activity. 'We're still in an uncertain period,' he said. Mike Jacob, the president of the Pacific Merchant Shipping Association, said the uptick was likely from shipping companies responding to last month's 90-day reprieve. 'We do expect there will be some hiccups because the supply chain works best when it's steady and measured, and what's been happening now is anything other than steady and measured,' he said in an interview. He said Trump's latest announcement was good news in that it would likely bring more short-term business. 'People have gone from talking about, 'How many layoffs am I going to have to do?' to 'How am I going to handle additional cargo?'' he said. Still, local elected officials were reckoning with the fallout. 'The damage is done," Richardson added. 'We've seen ships that never sailed.' Debra Kahn contributed reporting. Like this content? Consider signing up for POLITICO's California Climate newsletter.
Politico
13-05-2025
- Business
- Politico
West Coast ports reel from Trump's tariff swings
President Donald Trump gave West Coast ports a brief reprieve Monday when he agreed to temporarily pull back from sky-high tariffs on imported goods from China — but the industry remains in choppy waters. 'This is still a crisis,' Long Beach Mayor Rex Richardson said at a press conference Monday, where port and labor leaders touted a new study showing the Port of Long Beach's jobs impact. Trump's agreement with China to lower tariffs from 145 percent to 30 percent did little to ease the growing drumbeat of unease from the shipping and logistics industries of Long Beach and Los Angeles. Together, the ports are the busiest in the nation, even discounting the dozen-odd ships that have cancelled their trips from China so far, leaving California workers with fewer shifts unloading and transporting the goods. Representatives from across the shipping and agriculture industries detailed layoffs and cancelled orders at a Monday afternoon hearing in Sacramento called by California Treasurer Fiona Ma. 'I'm just going to be really frank, I don't know what Trump is trying to do,' said Amanda Blackwood, the president and CEO of the Supply Chain Federation. 'If there is a belief that creating disruption and leverage is going to create opportunity, I love your hope. However, that's not real, right? Disruption in the market just causes disruption.' West Coast import volumes have gone up and down over the past couple of months, most recently spiking over the weekend and into Monday. Mario Cordero, the CEO of the Port of Long Beach, said it would take one to two months for the latest change in tariffs between the U.S. and China to show up in port activity. 'We're still in an uncertain period,' he said. Mike Jacob, the president of the Pacific Merchant Shipping Association, said the uptick was likely from shipping companies responding to last month's 90-day reprieve. 'We do expect there will be some hiccups because the supply chain works best when it's steady and measured, and what's been happening now is anything other than steady and measured,' he said in an interview. He said Trump's latest announcement was good news in that it would likely bring more short-term business. 'People have gone from talking about, 'How many layoffs am I going to have to do?' to 'How am I going to handle additional cargo?'' he said. Still, local elected officials were reckoning with the fallout. 'The damage is done,' Richardson added. 'We've seen ships that never sailed.' Debra Kahn contributed reporting. Like this content? Consider signing up for POLITICO's California Climate newsletter.
Politico
13-05-2025
- Business
- Politico
The ports are not OK
Presented by With help from Paroma Soni EYES ON THE WEST COAST: President Donald Trump gave West Coast ports a brief reprieve Monday when he agreed to temporarily pull back from sky-high tariffs on imported goods from China — but the industry is still in choppy waters. 'This is still a crisis,' Long Beach Mayor Rex Richardson said at a press conference Monday, where port and labor leaders touted a new study showing the Port of Long Beach's jobs impact (it's tied to one out of every 22 jobs in California, and one out of every 77 jobs in the U.S.). Trump's agreement with China to lower tariffs from 145 percent to 30 percent did little to ease the growing drumbeat of unease from the shipping and logistics industries of Long Beach and Los Angeles. Together, the ports are the busiest in the nation, even discounting the dozen-odd ships that have canceled their trips from China so far, leaving California workers with fewer shifts unloading and transporting the goods. Representatives from across the shipping and agriculture industries detailed layoffs and canceled orders at a Monday afternoon hearing in Sacramento called by California Treasurer Fiona Ma. 'I'm just going to be really frank, I don't know what Trump is trying to do,' said Amanda Blackwood, the president and CEO of the Supply Chain Federation. 'If there is a belief that creating disruption and leverage is going to create opportunity, I love your hope. However, that's not real, right? Disruption in the market just causes disruption.' West Coast import volumes have gone up and down over the past couple of months, most recently spiking over the weekend and into Monday. Mario Cordero, the CEO of the Port of Long Beach, said it would take one to two months for the latest change in tariffs between the U.S. and China to show up in port activity. 'We're still in an uncertain period,' he said. Mike Jacob, the president of the Pacific Merchant Shipping Association, said the uptick was likely from shipping companies responding to last month's 90-day reprieve. 'We do expect there will be some hiccups because the supply chain works best when it's steady and measured, and what's been happening now is anything other than steady and measured,' he said in an interview. He said Trump's latest announcement was good news in that it would likely bring more short-term business. 'People have gone from talking about, 'How many layoffs am I going to have to do?' to 'How am I going to handle additional cargo?'' he said. Still, local elected officials were reckoning with the fallout. 'The damage is done,' Richardson added. 'We've seen ships that never sailed.' — CvK Did someone forward you this newsletter? Sign up here! NO MORE: House Republicans proposed today to undo the electric vehicle and renewable energy tax credits that make up the core of President Joe Biden's landmark climate law, which Trump has derided as a 'Green New Scam.' The tax-writing Ways and Means Committee detailed its proposed rollback as part of its highly anticipated portion of Republicans' mega reconciliation bill, POLITICO's Josh Siegel and James Bikales report. The Ways and Means text, which will get a markup on Tuesday, will act as a starting gun for negotiations with Senate Republicans over the politically sensitive clean energy tax credits that could take months. Party leaders are seeking to satisfy conservative hardliners who want to eliminate all the energy incentives under the climate law to pay for trillions of dollars in tax cuts. But they are also looking to keep the support of moderates who fear cutting them will jeopardize the jobs associated with manufacturing and power generation projects the Democrats' law is creating in Republican states and districts, putting several lawmakers in a vulnerable political position. The Congressional Budget Office and the Joint Committee on Taxation estimated the tax incentives would cost about $370 billion through their expiration in 2032, though other analyses predicted their costs would exceed $1 trillion. The incentives have also sparked hundreds of billions in private sector investment in clean energy. The Ways and Means bill comes less than a day after the Energy and Commerce Committee proposed in their bill to wipe out a wide swath of the clean energy programs and policies Democrats enacted under the Biden administration and reclaim $6.5 billion in unspent IRA funds. — CvK HIGH-SPEED DEBATE: Gubernatorial hopeful and former Rep. Katie Porter came out swinging against California's high-speed rail project just as proponents gear up for a fight for continued funding from the state's cap-and-trade revenues. 'Increasingly, the evidence is showing that this project is not going to be able to be completed remotely on budget or remotely on time. I think we're already past those benchmarks,' Porter told KTLA last week. 'That's why I don't think we should BS California voters. They have noticed that we don't have a high-speed rail. And they have noticed we've spent money on it.' The attack comes as Gov. Gavin Newsom prepares to release his revised budget proposal this week, potentially including a bid to reauthorize the state's cap-and-trade program — which will in turn kick off a discussion of cap-and-trade's proceeds, a quarter of which currently funds the rail project. Newsom didn't respond to a request for comment on Porter's remarks or his cap-and-trade plans. But the High-Speed Rail Authority put out a broad statement this weekend on the program's significance. 'Continued state investment is critical to the success of the project,' chief spokesperson Carol Dahmen said in an email. 'California's Cap-and-Trade program has traditionally been the only source of ongoing funding for high-speed rail. Since its inception, California High-Speed Rail grappled with a lack of full project funding which has resulted in costly delays and inefficient delivery. Under new leadership, the Authority has been engaged in ongoing discussions with the Administration, State Legislature, and private investors to build faster, smarter, and more economically to connect the State's population centers sooner.' — CvK FIRST IN CC: Speaking of cap and trade: A group of cap-and-trade boosters is launching a nonprofit to spread the gospel of carbon markets. The group, Clean and Prosperous California, will be led by executive director and climate economist Clayton Munnings and includes the California Air Resources Board's former chief economist Emily Wimberger, as well as the newest member of California's Independent Emissions Market Advisory Committee, Stanford professor and former Assemblymember Joe Nation. It'll focus on research, education and 'convenings,' like a happy hour scheduled for this Wednesday at Bottle & Barlow, plus wonkier activities online: two webinars on the history of cap and trade and its role in electricity prices, on May 21 (coinciding with the next quarterly auction) and May 28, respectively. 'Through our work at Clean and Prosperous California, we're committed to contributing valuable research insights to ensure that the cap-and-trade program continues delivering reductions affordably and offers certainty that we'll achieve our ambitious climate targets,' Nation said in a statement. — DK NEW COASTAL COMMISH: Chula Vista city councilmember and San Diego State University administrator Jose Preciado is the Coastal Commission's newest member, replacing Imperial Beach Mayor Paloma Aguirre as Assembly Speaker Robert Rivas' appointee to the San Diego coast slot. — DK — California's Inspector General determined state prisons are not ready for natural disasters like the 2023 flood that got dangerously close to Corcoran State Prison. — The closure of the Valero refinery would eliminate 20 percent of the city of Benicia's tax base. — Insurance Commissioner Ricardo Lara didn't rule out an investigation into State Farm following complaints by victims of January's fires in Los Angeles.
CNBC
08-05-2025
- Business
- CNBC
We're seeing a slowdown in all trade lanes with China, says Pacific Merchant Shipping's Mike Jacob
Mike Jacob, Pacific Merchant Shipping Association president, joins 'Power Lunch' to discuss impact of tariffs on ports and the American economy.
Yahoo
06-05-2025
- Business
- Yahoo
White House urges patience on tariffs as anxiety over prices escalates
President Donald Trump and his top aides have settled on a decidedly non-Trumpian message for American businesses and consumers panicked by his trade war: Be patient. Ahead of the next stage of economic fallout, that plea is already wearing thin. U.S. manufacturers and retailers are bracing for a massive drop-off in goods arriving from China, as ports across the West Coast warn of a plunge in shipments not seen since the early days of the Covid pandemic. The looming repercussions have prompted a new round of warnings and lobbying from business groups desperate to dodge Trump's tariffs. But there's little reassurance as the White House tries to coalesce around a consistent communications strategy, even as key allies like truckers begin to feel the effects of supply-chain gaps. A slump in arrivals at ports represents the first clear sign of supply chain disruption that industry players say could ripple to consumers over the next several weeks, sparking shortages and pushing prices higher for everyday goods like cars, furniture, clothes and even basic children's toys. "That means fewer jobs, along with rising prices for consumers and businesses," said Gene Seroka, the executive director of the Port of Los Angeles. "Consumers and manufacturers will face difficult decisions." Seroka's port is anticipating a 35 percent decline in container deliveries this week, compared with the same point last year, as Trump's soaring tariffs start to take their toll. Several other ports across California, Washington state and Oregon are also seeing slowdowns — raising the prospect that the pain Trump has warned Americans they may have to endure could be weeks from turning real. Senior Trump aides on the White House's National Economic Council and in the Treasury Department are closely monitoring the disruption, according to one White House official granted anonymity to discuss internal strategy. But they've felt little need to do any major outreach so far. Representatives for the Port of Los Angeles, Port of Oregon and a pair of ports in Washington state, as well as the Pacific Merchant Shipping Association that counts several marine terminals among its members, said Monday that they had not heard from any administration officials. Other industries are also raising alarms over the damage they could soon suffer from the sudden deterioration in trade with China. Toy giant Mattel announced Monday that it plans to raise prices on some products to account for the added cost of the tariffs. The Toy Association, which represents toy makers across the country, sponsored the White House Easter Egg Roll, hired a well-connected lobbying firm and has publicly pleaded with the administration for a reprieve from the tariffs, warning it's important to ensure "toys are available on retail shelves and available for the holiday season." Trump has shrugged it off, insisting children will be happy with fewer dolls this year amid his efforts to reorder the global economy Trump's communication challenges are complicated by an underlying truth: he has no intention of abandoning his trade showdown with China, aides and advisers said. That's forced officials to downplay the short-term impact even as Trump's top economic aides keep a close eye on the early fallout, while racing to nail down new trade agreements they hope can create fresh political and economic momentum that will overshadow the broader concerns. 'That's why you keep hearing the president preach patience,' said one outside adviser to the White House, granted anonymity to discuss internal thinking. 'They want to get to conclusion on some of these trade deals, and frankly I think they are banking on the tax reform later this year to rescue some of the numbers in the intermediate to long-term.' White House officials in recent weeks have sought to build a more structured message around Trump's freewheeling tariff decisions, casting certain tariffs on allies as temporary leverage to renegotiate more beneficial trade deals and others — like those on specific items like steel — as a hardline policy shift meant to force manufacturing of critical products back to the U.S. Trump and top aides like Treasury Secretary Scott Bessent have expressed hope they can make substantial progress on at least one trade deal in the coming days, allowing the administration to hold it up as all-important evidence that their approach is working. But in the interim, their efforts to sell the strategy have been complicated by the emerging economic consequences — and Trump's own dismissals of the potential pain. 'The messaging that we're going to have to go through some pain runs so counter to what Trump said during the campaign,' said Doug Heye, a veteran GOP strategist. ''We're all going to take it on the chin for a while' is not a slogan.' On Monday, Treasury Secretary Scott Bessent made a notable attempt at course correction, telling an audience at the Milken Institute Global Conference in Los Angeles that over the longer term, 'the result of the president's economic plan will be more' jobs, manufacturing and economic growth. 'This is the abundant vision he has for the future,' Bessent said, emphasizing that over the long term the U.S. economy 'reliably gets back up even stronger than it was before.' Yet the White House has remained vague on when that brighter future will arrive, and how much collateral damage it may take to get there. Trump remains undeterred, abruptly announcing Sunday night that he now wants tariffs on foreign movies. And key to the White House's approach is a bet that the tariffs will take a faster toll on China's economy, forcing the nation to the negotiating table. But economic experts and even some Trump allies are increasingly questioning how long the White House can stay a step ahead of severe political pain. 'Some of the advisers to Trump are taking it very seriously, but that doesn't mean they're saying that to him in those terms,' said Ian Bremmer, president of nonpartisan risk assessment firm Eurasia Group, who has been in touch with U.S. and foreign officials about the tariff repercussions. 'We're the least patient country in the world.' The slowdowns at West Coast ports are likely to hit a range of goods, potentially resulting in higher costs for some of the most visible products that Americans buy. The tariffs put on China also threaten to strain domestic small businesses that rely on imported materials from overseas. At E-Blox, a family owned company in Illinois that makes educational toys, all shipments have been suspended until tariff levels come back down. 'Everything's on hold, production, development, shipping, everything,' said Joseph Seymour, the company's chief operating officer. Seymour is a member of the Toy Association, which shortly after the election enlisted the Trump-tied lobbying firm Ballard Partners to plead its case on tariffs with White House aides, its trade office and the Commerce Department. But he hasn't seen much progress in the group's efforts to exempt toys, criticizing Trump's boasts about generating more revenue through the trade war as largely disadvantageous to businesses at home. 'It's not affecting China,' Seymour said. 'It's affecting us right here.' The immediate repercussions are also weighing on more fundamental parts of the economy, port officials said. A John Deere shipment of cotton processing machinery that's traditionally sent to China each spring is on hold; a sign the trade war is affecting outbound cargo as well. The slowdown will inevitably mean fewer ships coming and going, which means fewer shifts for longshoremen and fewer hauls for trucking firms. And while most American consumers might be able to afford a little more patience, truckers are already starting to feel the financial squeeze. 'We're kind of in uncharted territory,' said Sam Cho, a commissioner with the Port of Seattle. 'As far as dealing with essentially a global trade war, there's really no other way to put it.'
