Inbound container shipments at the Port of Los Angeles plummeted as much as 30% in early May, driven by President Donald Trump's tariffs that have dampened trade and left local port officials bracing for prolonged uncertainty, Bloomberg reported.
Port of Los Angeles Executive Director Gene Seroka highlighted the immediate consequences of the tariffs, announced by Trump in early April, which particularly targeted imports from China.
"Fewer containers mean less work on the waterfront, from the number of labor gangs that are out there responding to the shift requirements of cargo to the truckers and warehouse workers," Seroka said in a briefing Monday. "The impact was felt almost immediately during that first week of May."
The port had experienced a surge as importers scrambled to stock up before tariffs took effect, resulting in nearly 843,000 twenty-foot equivalent units (TEUs) being handled in April, a 9.4% increase from the same period a year ago. However, that short-lived spike quickly reversed once tariffs set in.
Exports, meanwhile, have declined steadily for five consecutive months as international trading partners retaliated, hitting U.S. agricultural and manufactured goods particularly hard.
The temporary 90-day tariff reduction agreement between the U.S. and China may help revive trade activity in June and July. Seroka expects importers to move stored inventory accumulated during the "sky-high" tariff period.
Yet, future cargo volumes are uncertain, with elevated tariffs and trade policies remaining unpredictable. Shipping cancellations reflect the ongoing challenges, with 17 out of 80 scheduled sailings canceled this month and another 10 cancellations expected in June.
The nearby Port of Long Beach, sharing California's San Pedro Bay with Los Angeles, similarly faces declining cargo volumes. Despite setting records in April by handling over 867,000 TEUs, the port anticipates a 10% decline in imports in May.
"After moving the most containerized cargo of any American port in the first quarter of 2025, we are now anticipating a more than 10% drop-off in imports in May — and the effects will be felt beyond the docks," Port of Long Beach CEO Mario Cordero said last week.
In Northern California, the Port of Oakland was also impacted, reporting a 14.7% cargo decrease from March to April, and roughly 185,500 TEUs were processed last month. The drop is attributed directly to declining export demand and trade instability.
The Los Angeles and Long Beach port complex historically handles around 31% of all U.S. container trade, totaling 19.9 million TEUs last year. That number is expected to shrink in 2025 due to ongoing disruptions.
These ports support one in 12 local jobs, but their economic influence extends beyond Southern California, indicating broader national implications if current trade policies remain unchanged.