Port of Los Angeles Faces Import Delays Amid Rising Trade Frictions

A recent publication by the Port of los Angeles highlights a important decline in cargo activity, marking the lowest monthly output in over two years due to a slowdown in shipping linked to tariffs.

During a briefing on June 13, Gene Seroka, the executive director of the port, revealed that approximately 716,000 twenty-foot equivalent units were processed in May. This figure represents a 5% decrease compared to last year’s numbers for the same month. Typically, May sees robust cargo movement as it leads into summer’s peak season; however, imports plummeted by 19% from April and dropped 9% year-over-year. Seroka cautioned that without long-term trade agreements from the current administration to alleviate tariff pressures, consumers might face higher prices and limited choices during the holiday shopping season.

“The rapid changes in tariff policies have created challenges for consumers and businesses alike,” he noted.

In this context, ernie tedeschi from Yale Budget Lab presented findings indicating that U.S. tariffs could potentially raise consumer prices by about 1.5% by year-end and diminish household purchasing power by nearly $2,500 annually. He also projected that these tariffs might reduce GDP growth by around 0.5% come 2025 while resulting in approximately 376,000 job losses and an uptick of about 0.3% in unemployment rates.

“I believe this is just a baseline estimate,” he remarked further. “Beyond direct impacts from tariffs themselves are uncertainty effects—consumers and businesses are hesitant to make long-term investments or hiring decisions when they’re unsure about future tariff policies.”

Certain industries heavily reliant on imported goods may experience steep price hikes as well; as an example, leather products could see increases up to 17%, while apparel might rise by around 15%. Such changes would disproportionately affect lower-income families and working-class households. Overall projections suggest that effective tariff rates will reach levels not seen since the Great Depression by 2025.