Due to the implementation of a 145% tariff on Chinese goods by U.S. President Trump, trade has stagnated. In May, the import volume at several busy ports in the United States sharply declined, with the busiest port in the U.S., the Port of Los Angeles, experiencing a 9% year-on-year decrease in import volume. This reflects that after the imposition of additional tariffs, a significant amount of cargo shipments were either cancelled or delayed.
China is the largest supplier of maritime goods to the United States, and the Port of Los Angeles is the primary port through which these imported goods are received. From retailers like Walmart to automotive manufacturers like Ford, American businesses rely on this port for unloading items such as toys, furniture, and auto parts.
In May, the Port of Los Angeles processed an import volume equivalent to 355,950 20-foot standard shipping containers. Gene Seroka, the Executive Director of the Port of Los Angeles, stated, “May was the lowest month for cargo volume in over two years.”
Last month, the world’s two largest economies, the U.S. and China, agreed to a 90-day suspension of further retaliatory tariffs. The U.S. also reduced the tariff on Chinese goods from 145% to 30%. This week, both sides agreed to maintain the lower tax rates, easing tensions in the trade dispute.
Port executives and shipping consultants anticipate that the volume of cargo from China will rebound, but the increase may be modest as the 30% tariff still represents a significant cost burden for importers.
Seroka further added, “I expect overall cargo flow for the remainder of 2025 to remain at moderate levels.”
Additionally, since Trump announced the policy of reciprocal tariffs in April, although most countries were granted a 90-day extension, the basic tariff of 10% has significantly boosted U.S. tariff revenue. Along with the new tariffs imposed on steel, aluminum, automobiles, and other goods from China, Mexico, and Canada, in April and May this year, tariffs brought in $37.8 billion in revenue for the U.S. government. According to statistics from the U.S. Department of the Treasury, tariffs collected in May accounted for 6% of the total U.S. government revenue, totaling $22 billion, a 42% increase from April’s $15.6 billion, reaching a historic high.