Port of LA Sees Busiest June Ever as Tariffs ‘Whipsaw’ Imports

5 hours ago 1
g1cd620wx1[]07e6u93zjfbq_media_dl_1.pngg1cd620wx1[]07e6u93zjfbq_media_dl_1.png Port of Los Angeles

Article content

(Bloomberg) — The busiest trade hub in the US saw container traffic rebound last month after a slump in May, as importers grapple with volatility driven by President Donald Trump’s trade war.

Financial Post

THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY

Subscribe now to read the latest news in your city and across Canada.

  • Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
  • Daily content from Financial Times, the world's leading global business publication.
  • Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
  • National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
  • Daily puzzles, including the New York Times Crossword.

SUBSCRIBE TO UNLOCK MORE ARTICLES

Subscribe now to read the latest news in your city and across Canada.

  • Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
  • Daily content from Financial Times, the world's leading global business publication.
  • Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
  • National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
  • Daily puzzles, including the New York Times Crossword.

REGISTER / SIGN IN TO UNLOCK MORE ARTICLES

Create an account or sign in to continue with your reading experience.

  • Access articles from across Canada with one account.
  • Share your thoughts and join the conversation in the comments.
  • Enjoy additional articles per month.
  • Get email updates from your favourite authors.

THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.

Create an account or sign in to continue with your reading experience.

  • Access articles from across Canada with one account
  • Share your thoughts and join the conversation in the comments
  • Enjoy additional articles per month
  • Get email updates from your favourite authors

Sign In or Create an Account

or

Article content

The Port of Los Angeles processed some 892,000 twenty-foot-equivalent units or TEUs, according to executive director Gene Seroka. That’s a record for June and up 32% from the previous month. Overall, volumes in the first half of the year were up 5% from 2024.

Article content

Article content

Article content

“While record-setting volume is welcome news, it also highlights the tariff whipsaw effect,” Seroka told reporters on Monday.

Article content

By signing up you consent to receive the above newsletter from Postmedia Network Inc.

Article content

Since taking office for a second time, Trump has jacked up US import taxes to the highest levels in a century or more — and added extra confusion for businesses by frequently announcing steep new tariffs only to dial them back soon after. 

Article content

At the LA port, imports slowed significantly in May as the president hiked duties on Chinese goods well above 100%. But they picked up again starting around mid-June, after Washington and Beijing agreed a truce to bring the rates back down.

Article content

The port unloaded about 470,000 import containers last month, about 10% more than June last year. Export volumes nudged up from a year earlier to 126,000 TEU, while processing of empty containers rose 7% to 296,000 TEU. 

Article content

“Overall the combined cargo volume for the last two months is about the same as last year,” Seroka said. 

Article content

US business will likely have to deal with plenty more trade-war whipsawing. Just in the past week or so, Trump has threatened new tariffs ranging from 30% on Mexico and Europe to 50% on copper and 100% on Russia or countries that buy energy from it. What’s more, his protectionist moves may invite retaliation. 

Article content

“There’s a concern among American outbound shippers that we’ll start to see more reciprocal tariffs on US goods,” Seroka said. 

Article content

Seroka said he expects last month’s surge to continue in July, as companies rush to beat a new Aug. 1 deadline that Trump has set for higher tariffs on most US trading partners. 

Article content

But he also warned that higher costs, related to uncertainty as well as the tariffs themselves, will continue to hit importers. Trade forecasters expect a severe drop for the rest of the summer and through the holiday period that starts in November — typically peak season at the ports.

Article content

Read Entire Article