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Miami Herald
06-05-2025
- Business
- Miami Herald
America's Busiest Ports Issue ‘Dire' Warning Over Trump Tariffs
National America's Busiest Ports Issue 'Dire' Warning Over Trump Tariffs los angeles port. Container ships moored at the Port of Los Angeles in Los Angeles Tuesday, April 15, 2025. Damian Dovarganes/AP Photo 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." 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 Rugytold 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 Beniketold 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. Related Articles 2025 NEWSWEEK DIGITAL LLC. This story was originally published May 6, 2025 at 7:20 AM.
Newsweek
06-05-2025
- Business
- Newsweek
America's Busiest Ports Issue 'Dire' Warning Over Trump Tariffs
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. 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.
Yahoo
05-05-2025
- Business
- Yahoo
Trump tariffs prompt slump in shipments to US ports
Donald Trump's increasingly erratic trade war has triggered a slump in shipments to the US's most important ports, amid the growing risk of a recession in the world's largest economy. In the latest sign of the US president's tariff policies rattling the economy, figures show the number of vessels scheduled to arrive at the Port of Los Angeles next week is down by almost a third on the same period a year earlier. According to the data compiled from ocean carrier manifest records by Port Optimizer, the number of arrivals this week is on track to be down by about 11% on the same week last year. Separate figures reported by the Financial Times from Vizion, a data provider, show container bookings from China to the US fell 45% by mid-April compared with a year earlier. Related: UK banks brace for first-quarter reports after Trump tariff turmoil Economists have warned that Trump's trade battles will lead to a significant slowdown in global trade and come with a cost for US consumers by pushing up prices and raising the chances of a recession. Washington has imposed a 145% tariff on Chinese imports and a blanket 10% border tax on all other countries, barring some exemptions. Over the weekend, the US treasury secretary, Scott Bessent, suggested there was a potential 'path' to a deal with China on tariffs after speaking with his Chinese counterparts on the sidelines of the International Monetary Fund and World Bank spring meetings. Analysis by the US private equity group Apollo Global Management showed new business orders have fallen sharply since Trump's 'liberation day' announcement on 2 April. Torsten Sløk, the asset manager's chief economist, said: 'For companies, new orders are falling, capex [investment] plans are declining, inventories were rising before tariffs took effect, and firms are revising down earnings expectations. 'For households, consumer confidence is at record-low levels, consumers were front loading purchases before tariffs began, and tourism is slowing, in particular international travel.' Growing numbers of US company chief executives have voiced alarm at the impact from Trump's tariff policies. The bosses of Walmart and Target, two of the country's largest retailers, have warned the president that his plans could disrupt supply chains, raise prices and lead to empty shelves. Analysts said the latest shipping figures, which are updated on a daily basis, indicated the fallout was escalating. However, some of the decline will also be down to a lull in activity after US companies rushed to import goods before Trump's inauguration in anticipation of his tariff policies. The US trade deficit widened to a record high in January as companies front-loaded imports before tariffs were imposed. Kathleen Brooks, the research director at the trading platform XTB, said: 'Already, port authorities in the US and logistics firms are expecting Chinese shipments to fall sharply. 'Demand for goods from China has plummeted since mid-April, suggesting that US businesses have been quick to adjust to the tariffs.' Brooks said the fall in container bookings would have a 'major impact' on Chinese businesses. However, the vice head of China's state planner, Zhao Chenxin, said on Monday he was 'fully confident' that the world's second-largest economy would achieve its economic growth target of about 5% for 2025. The San Pedro Bay ports of LA and Long Beach handle almost a third of all containerised seaborne trade in the US, and act as the main gateway for goods from China. As the busiest port in the western hemisphere, cars, computers and smartphones are the top imports to the port of LA. Highlighting that it typically takes between 20 and 40 days for a sea container to travel from China to the US, Sløk said there would be a knock-on impact on demand for US trucking from the middle of next month, which could lead to empty shelves and layoffs in the distribution and retail industries. This could lead to a recession by the summer, he added. Paul Krugman, the US Nobel-winning economist, said the collapse in trade was 'reminiscent of what happened during and after the Covid pandemic' amid growing uncertainty for companies over the president's policies. 'But this time a virus won't be responsible. It will all be about Donald Trump,' he wrote on Substack. 'This time there won't be a vaccine coming to our rescue. We're stuck with this chaos agent for three years and three months.'
Japan Today
28-04-2025
- Business
- Japan Today
With China and U.S. at intense economic odds, nations are being forced to choose sides
By DIDI TANG and ZEKE MILLER One went to the United States. The other went to China. It was a sign of the times. While the Swiss president was in Washington last week to lobby U.S. officials over President Donald Trump's threatened 31% tariff on Swiss goods, the Swiss foreign minister was in Beijing, expressing his nation's willingness to strengthen cooperation with China and upgrade a free trade agreement. As Trump's trade war locks the world's two largest economies on a collision course, America's unnerved allies and partners are cozying up with China to hedge their bets. It comes as Trump's trade push upends a decade of American foreign policy — including his own from his first term — toward rallying the rest of the world to join the United States against China. And it threatens to hand Beijing more leverage in any eventual dialogue with the U.S. administration. With Trump saying that countries are 'kissing my ass' to negotiate trade deals on his terms or risk stiff import taxes, Beijing is reaching out to countries far and near. It portrays itself as a stabilizing force and a predictable trading partner, both to cushion the impact from Trump's tariffs and to forge stronger trade ties outside of the U.S. market. 'America and China are now locked in a fierce contest for global supremacy,' Singaporean Prime Minister Lawrence Wong said in an April 16 speech. 'Both powers claim they do not wish to force countries to choose sides. But in reality, each seeks to draw others closer into their respective orbits.' The tariffs on Chinese goods are off the charts Trump has paused some of his steepest tariffs on most American partners for 90 days after global financial markets melted down. But he has raised tariffs on Chinese goods to 145%, drawing rebukes from Beijing, which has vowed to "fight to the end.' U.S. companies are warning of higher prices, meaning Trump could face both higher inflation and empty store shelves. The magnitude of the taxes are already dramatically affecting American imports, with the shipping containers set to arrive at the Port of Los Angeles down nearly 36% over the past two weeks, according to Port Optimizer, which tracks vessels. It's lending urgency for both the U.S. and China to bolster support from alternate partners. While Trump administration officials suggest the president could ease the duty rates on Chinese goods at his discretion, there has been no indication he's yet looking for a reduction. That, after all, could suggest his protectionist policies were hurting the American economy. 'They want to make a deal obviously," Trump told reporters Sunday, saying the U.S. had gone 'cold turkey' on trade from China. 'Right now, they're not doing business with us.' The White House has framed any negotiations as being between the U.S. president and Chinese President Xi Jinping, but neither leader seems willing to make the initial outreach without some kind of concession. The two countries can't even agree publicly whether they are holding talks. Earlier this month, Xi — on his first foreign trip this year — visited Vietnam, Malaysia and Cambodia, resulting in mutual pledges for closer economic and trade ties. In Vietnam, which faces the 46% tariff from the U.S., Beijing and Hanoi agreed to strengthen industrial and supply chain cooperation. In Malaysia and Cambodia, Xi secured similar agreements. Cambodia is faced with a 49% tariff from the U.S., and Malaysia 24%. Then there's Japan: Despite its long-standing enmity towards the nation that once colonized parts of it, the Chinese government has reached out to Tokyo and urged a coordinated response, according to Kyodo News. China is digging in China is ready to use the stick, too. A South Korean newspaper has reported that China is demanding South Korean businesses not to ship goods containing China's rare earth minerals to U.S. defense companies or face likely sanctions. Earlier this month, Beijing warned that no country should reach a deal with the U.S. at China's expense and vowed to take countermeasures in a 'resolute and reciprocal manner' should such a situation arise. Hal Brands, a senior fellow at the American Enterprise Institute in Washington, said China will 'try to exploit Trump's abrasive behavior to make inroads with U.S. allies and countries in the Global South.' Some scholars say Beijing is already gaining. 'People lost the confidence, or even trust, for the United States, particularly for Donald Trump in the U.S. Not for China,' said Li Cheng, professor of political science at the University of Hong Kong. 'So in that regard, China gains in the geopolitical landscape.' In the latest Ipsos poll, for the first time, more people globally now say China has a positive impact on the world than the United States. The pollster cited the broad backlash to Trump's tariffs. Countries have to choose, but it's difficult China is the world's largest exporter and the U.S. the largest importer. Total trade for China reached a record 43.85 trillion yuan (US$6 trillion) in 2024, and the country is the biggest trading partner for most of the world, including the European Union, Japan, South Korea and the grouping of the 10 Southeast Asian countries known as ASEAN. The U.S. is the biggest destination for China's exports, though China is only the third-largest trading partner with the U.S., behind Mexico and Canada. Total trade for the U.S. last year was $5.4 billion, with a record deficit of $1.2 trillion. For ASEAN countries, trade with the U.S. totaled $477 billion in 2024, including $352 billion worth of goods sold to the U.S. But China does more business with ASEAN. Countries caught between the U.S. and China are in 'an impossible situation' because they need to stay economically connected both to China, "a source of a lot of their input and imports' and to the powerhouse U.S. market, said Matthew Goodman, director of the Greenberg Center for Geoeconomic Studies at the Council on Foreign Relations. 'They cannot choose one or the other, because they need both,' Goodman said. In Europe, China is preparing to lift sanctions to revive a trade deal, according to the Hong Kong-based South China Morning Post. Chinese state media have been calling on European leaders to join China in safeguarding the multilateralism. Back in Beijing, Xi has been receiving foreign leaders. On Thursday, he told Kenya's president that China's market has always kept its door open to high-quality products from Kenya and that China encourages more capable Chinese enterprises to invest and start businesses in Kenya, according to the official Xinhua News Agency. On Wednesday, Xi met Azerbaijan's president. Xi criticized the trade war as undermining the rights and interests of all countries. Beijing sounds resolute On Friday, when Xi presided over a key economic meeting, Beijing's leadership struck a positive tone but acknowledged 'increasing impact from external shocks' and 'urged preparing for worst-case scenarios with sufficient planning,' according to Xinhua. Wang Yiwei, a senior fellow at Beijing's Center for China and Globalization, said China, after dealing with Trump's first term, is prepared for his latest tariff approach. 'China is prepared for the worst,' Wang said, 'and it is no longer living in the fantasy of globalization.' Victor Gao, vice president of the Center for China and Globalization, said Beijing is prepared for decoupling. 'What will be the end? It's a complete halt, meaning no more U.S exports to China, no more China exports to the United States,' he said. And, despite high costs to China's economy, China will survive, Gao said. 'For a country especially like China with a history of 5,000 years, what kind of people have we not seen? Whatever invaders, robbers, and barbarians,' Gao said. 'But at the end, they all leave. They all disappear, all get defeated." © 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
New Indian Express
28-04-2025
- Business
- New Indian Express
With China and the US at intense economic odds, other nations are being forced to choose sides
WASHINGTON: One went to the United States. The other went to China. It was a sign of the times. While the Swiss president was in Washington last week to lobby U.S. officials over President Donald Trump's threatened 31% tariff on Swiss goods, the Swiss foreign minister was in Beijing, expressing his nation's willingness to strengthen cooperation with China and upgrade a free trade agreement. As Trump's trade war locks the world's two largest economies on a collision course, America's unnerved allies and partners are cozying up with China to hedge their bets. It comes as Trump's trade push upends a decade of American foreign policy — including his own from his first term — toward rallying the rest of the world to join the United States against China. And it threatens to hand Beijing more leverage in any eventual dialogue with the U.S. administration. With Trump saying that countries are "kissing my ass" to negotiate trade deals on his terms or risk stiff import taxes, Beijing is reaching out to countries far and near. It portrays itself as a stabilizing force and a predictable trading partner, both to cushion the impact from Trump's tariffs and to forge stronger trade ties outside of the U.S. market. "America and China are now locked in a fierce contest for global supremacy," Singaporean Prime Minister Lawrence Wong said in an April 16 speech. "Both powers claim they do not wish to force countries to choose sides. But in reality, each seeks to draw others closer into their respective orbits." The tariffs on Chinese goods are off the charts Trump has paused some of his steepest tariffs on most American partners for 90 days after global financial markets melted down. But the Republican president has raised tariffs on Chinese goods to 145%, drawing rebukes from Beijing, which has vowed to "fight to the end." U.S. companies are warning of higher prices, meaning Trump could face both higher inflation and empty store shelves. The magnitude of the taxes are already dramatically affecting American imports, with the shipping containers set to arrive at the Port of Los Angeles down nearly 36% over the past two weeks, according to Port Optimizer, which tracks vessels. It's lending urgency for both the U.S. and China to bolster support from alternate partners. While Trump administration officials suggest the president could ease the duty rates on Chinese goods at his discretion, there has been no indication he's yet looking for a reduction. That, after all, could suggest his protectionist policies were hurting the American economy. "They want to make a deal obviously," Trump told reporters Sunday, saying the U.S. had gone "cold turkey" on trade from China. "Right now, they're not doing business with us." The White House has framed any negotiations as being between the U.S. president and Chinese President Xi Jinping, but neither leader seems willing to make the initial outreach without some kind of concession. The two countries can't even agree publicly whether they are holding talks. Earlier this month, Xi — on his first foreign trip this year — visited Vietnam, Malaysia and Cambodia, resulting in mutual pledges for closer economic and trade ties. In Vietnam, which faces the 46% tariff from the U.S., Beijing and Hanoi agreed to strengthen industrial and supply chain cooperation. In Malaysia and Cambodia, Xi secured similar agreements. Cambodia is faced with a 49% tariff from the U.S., and Malaysia 24%. Then there's Japan: Despite its long-standing enmity towards the nation that once colonized parts of it, the Chinese government has reached out to Tokyo and urged a coordinated response, according to Kyodo News. China is digging in China is ready to use the stick, too. A South Korean newspaper has reported that China is demanding South Korean businesses not to ship goods containing China's rare earth minerals to U.S. defense companies or face likely sanctions. Earlier this month, Beijing warned that no country should reach a deal with the U.S. at China's expense and vowed to take countermeasures in a "resolute and reciprocal manner" should such a situation arise. Hal Brands, a senior fellow at the American Enterprise Institute in Washington, said China will "try to exploit Trump's abrasive behavior to make inroads with U.S. allies and countries in the Global South." Some scholars say Beijing is already gaining. "People lost the confidence, or even trust, for the United States, particularly for Donald Trump in the U.S. Not for China," said Li Cheng, professor of political science at the University of Hong Kong. "So in that regard, China gains in the geopolitical landscape." Countries have to choose, but it's difficult China is the world's largest exporter and the U.S. the largest importer. Total trade for China reached a record 43.85 trillion yuan (US$6 trillion) in 2024, and the country is the biggest trading partner for most of the world, including the European Union, Japan, South Korea and the grouping of the 10 Southeast Asian countries known as ASEAN. The U.S. is the biggest destination for China's exports, though China is only the third-largest trading partner with the U.S., behind Mexico and Canada. Total trade for the U.S. last year was US$5.4 billion, with a record deficit of $1.2 trillion. For ASEAN countries, trade with the U.S. totaled $477 billion in 2024, including $352 billion worth of goods sold to the U.S. But China does more business with ASEAN. Countries caught between the U.S. and China are in "an impossible situation" because they need to stay economically connected both to China, "a source of a lot of their input and imports" and to the powerhouse U.S. market, said Matthew Goodman, director of the Greenberg Center for Geoeconomic Studies at the Council on Foreign Relations. "They cannot choose one or the other, because they need both," Goodman said. In Europe, China is preparing to lift sanctions to revive a trade deal, according to the Hong Kong-based South China Morning Post. Chinese state media have been calling on European leaders to join China in safeguarding the multilateralism. Back in Beijing, Xi has been receiving foreign leaders. On Thursday, he told Kenya's president that China's market has always kept its door open to high-quality products from Kenya and that China encourages more capable Chinese enterprises to invest and start businesses in Kenya, according to the official Xinhua News Agency. On Wednesday, Xi met Azerbaijan's president. Xi criticized the trade war as undermining the rights and interests of all countries. Beijing sounds resolute On Friday, when Xi presided over a key economic meeting, Beijing's leadership struck a positive tone but acknowledged "increasing impact from external shocks" and "urged preparing for worst-case scenarios with sufficient planning," according to Xinhua. Wang Yiwei, a senior fellow at Beijing's Center for China and Globalization, said China, after dealing with Trump's first term, is prepared for his latest tariff approach. "China is prepared for the worst," Wang said, "and it is no longer living in the fantasy of globalization." Victor Gao, vice president of the Center for China and Globalization, said Beijing is prepared for decoupling. "What will be the end? It's a complete halt, meaning no more U.S exports to China, no more China exports to the United States," he said. And, despite high costs to China's economy, China will survive, Gao said. "For a country especially like China with a history of 5,000 years, what kind of people have we not seen? Whatever invaders, robbers, and barbarians," Gao said. "But at the end, they all leave. They all disappear, all get defeated." ___ (By DIDI TANG and ZEKE MILLER Associated Press, with contributions from AP writer Josh Boak)
