Los Angeles port officials said on Tuesday that due to the impact of the tariff policies implemented by U.S. President Trump, major American retailers have significantly cut back on orders from China, with an expected 35% reduction in goods shipped from China to the West Coast.
As the largest port in the United States in terms of container volume and cargo value, Gene Seroka, the port’s executive director, stated in an interview with CNBC’s financial program “Squawk Box” on Tuesday, “Based on our measurements of Asian shipping, next week’s volume will decrease by over 35% compared to the same period last year. Due to the tariffs, multiple major American retailers have ceased all shipments from China, leading to a sharp decline in cargo volume.”
Currently, Chinese goods account for approximately 45% of the business at the Los Angeles port.
Seroka pointed out that some shipping companies are trying to offset losses by sourcing goods from other regions in Southeast Asia.
He added, “In fact, the volume of imports from China will be very limited until some agreement or framework is reached with China, apart from a few select commodities.”
The Los Angeles port is also preparing for a significant decline in overall shipping activity. Shipping data has already shown early signs of a slowdown in Chinese trade flows to the United States, and Seroka stated that ship arrivals in May are expected to be canceled by about a quarter.
Currently, American retailers are somewhat protected due to stockpiling before Trump announced the tariffs. Seroka estimated that business inventories could sustain an adequate supply for five to seven weeks, after which shortages may occur.
Seroka stated, “I don’t think shelves in stores or online shopping will be completely empty. But if you want to buy a blue shirt, you may find 11 purple shirts and one blue shirt in the wrong size.” He added, “With fewer imported goods available, we will see fewer choices on the shelves. And the price of that remaining blue shirt will also rise.”
On Tuesday, Trump admitted in an interview with ABC reporter Terry Moran that under a 145% tax rate, China essentially cannot do business in the U.S. However, he emphasized that this is a “transitional period,” and the taxation is aimed at addressing the trade deficit and encouraging manufacturing to return. He also believes that “China may end up absorbing those tariffs.”