Port Leaders Warn Tariffs to Bring ‘Radical Uncertainty’

Cordero: Fewer Containers Arriving Will Mean Less Work for Longshoremen, Truckers, Warehouse Employees, Retailers
Containership docked at the Port of Long Beach
A containership docked at the Port of Long Beach in California on April 24. (Eric Thayer/Bloomberg News)

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Leaders of major West Coast ports warned that a sharp drop in ship traffic tied to President Donald Trump’s steep tariffs on Chinese goods will threaten jobs, raise prices and ripple through the broader U.S. economy.

Port of Long Beach CEO Mario Cordero said the trade policies will discourage shipping activity at the largest U.S. gateways for goods from Asia. Ships arriving with fewer containers will mean less work for longshoremen, truck drivers, warehouse employees and retailers across the country, Codero said during a call with reporters May 1.

“This activity directly supports 2.7 million jobs across the country,” he said. “It’s an effect that will be felt far beyond the docks.”



RELATED: Ports Post Cargo Growth in March, but Possible Slowdown Looms

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Mario Cordero

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Cordero appeared alongside Democratic U.S. senators from California, Washington and Oregon as well as Port of Seattle Commissioner Ryan Calkins, who warned that traffic could fall by as much as 40% by late May.

Separately, Gene Seroka, executive director of the Port of Los Angeles, said earlier that cargo volumes are already slowing.

RELATED: Shipments From China Fall as Tariffs Loom

“It’s my prediction that in two weeks, arrivals will drop by 35% as essentially all shipments out of China for major retailers and manufacturers have ceased,” Seroka said during a presentation. “And cargo coming out of Southeast Asia locations is much softer than normal with the tariffs now in place.”

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Seroka

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On the May 1 call, the port commissioners urged U.S. lawmakers to reverse the tariffs, which Trump imposed using emergency powers and without seeking congressional approval.

The Senate on April 30 deadlocked 49-49 on a measure aimed at reclaiming some trade authority from the White House. The Senate action was largely symbolic, since Republican House leaders signaled that they didn’t intend to take it up.

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The commissioners also warned of the impact on U.S. manufacturers, farmers and ranchers who are pulling back some of their exports to find other markets that wouldn’t face the steep retaliatory tariffs that China has placed on U.S. goods. With companies already placing orders for back-to-school and holiday seasons, Cordero said time is running out to avoid even worse disruptions to supply chains — and price shocks for consumers.

“It’s a wake-up call,” he said. “We’re entering a period of radical uncertainty.”