After 10 straight months of year-over-year growth, the Port of Los Angeles Friday announced it experienced a 5% decrease in cargo volume in May, citing the impact of federal tariffs on imports and exports.
During an online briefing Friday, Port of L.A. Executive Director Gene Seroka said longshore workers processed 716,619 twenty-foot equivalent units last month. May volume is typically stronger than April as the port approaches its traditional peak season, but imports dropped by 19%, he added.
“Unless long-term, comprehensive trade agreements are reached soon, we’ll likely see higher prices and less selection during the year-end holiday season,” Seroka said. “The uncertainty created by fast-changing tariff policies has caused hardships for consumers, businesses and labor.”
May loaded imports stood at 355,950 TEUs, a 9% decrease compared to the same month in 2024. Loaded exports landed at 120,196 TEUs, a 5% drop compared to last year.
Additionally, the port processed 240,472 empty container units, which represented a 2% increase compared to May 2024.
Ernie Tedeschi, a director of economics at The Budget Lab at Yale, a nonpartisan policy research center that provides in-depth analysis of federal policies, joined Seroka to discuss the impacts of tariffs on American consumers. The Budget Lab has been modeling the impact of tariffs on American households since the first announcements earlier this year.
“Tariffs would raise average prices by 1.5%, a loss in purchasing power of nearly $2,500 per household per year,” Tedeschi said. “But that impact isn’t the same across all families or products: lower-income and working-class families see a bigger hit than higher-income families, and products more likely to be imported like shoes, apparel, and consumer electronics will see double-digit percent price increases.”
A slowdown in cargo movement and trade is expected as a result of federal trade policies and tariffs.
President Donald Trump in April enacted his long-promised “reciprocal” tariffs — placing a 10% baseline tax on imports and other higher rates for U.S. trading partners that run so-called trade surpluses. China has faced much higher tariffs, up to 145%, prompting Chinese officials to threaten a 125% tariff on U.S. goods.
Amid a 90-day agreement, U.S. and China lowered tariffs, while they negotiated an overall deal. According to reports Thursday, the U.S. and China reached a truce after talks in London this week.
“We are getting a total of 55% tariffs, China is getting 10%,” Trump wrote on his social media site, Truth Social, on Wednesday. More details on the deal are expected to be announced in the future.
According to Seroka, these tariffs are straining businesses, who cited some challenges in the automobile industry. The executive director said he attended a recent automotive conference in Detroit, where industry leaders and tiered suppliers reported a “steady, but low level flow of parts and components” to keep factories moving.
“Auto sales are not at their peak right now and at this point in time, the choice between paying higher tariffs in that sector and shutting a line down at an auto plant is a no brainer,” Seroka said. “For many, a line closure could mean $2 million to $5 million per hour in lost investment.”
He added, “On the side of small-to-medium sized businesses, they’re really feeling the financial pitch.”
On the labor side, in the back end of May, the port conducted a study. Over 25 labor ships that came in — every two longshore members that walked into the hiring hall, one went home without work.
He noted that the port is keeping track of two important dates: July 8, which is a deadline to conclude tariff discussions with other U.S. trading partners except Mexico and Canada, and August 11, which is the end of that 90 day pause period between the United States and China.
According to Seroka, White House officials have indicated that if they’re in good faith negotiations and progress is made with trading partners those dates may be extended.
“Well, once again, that adds to the complexity that we’re all trying to deal with. More than 60 announcements on trade and tariffs have emanated from Washington since January,” Seroka said. “…We need long term comprehensive trade agreements.”