Los Angeles Port Logs Busiest June In History Amid Easing US-China Trade Tensions

The Port of Los Angeles handled 8% more cargo containers in June compared to the same period a year earlier, as importers rushed to bring in goods ahead of the holiday shopping season amid easing trade tensions between the U.S. and China.

The Port of Los Angeles and the nearby Port of Long Beach handle nearly 31% of the U.S. freight traffic. The port, the top destination for Chinese shipments, processed 470,450 TEUs of imported containers in June, 10% more than in the same month last year. Overall, it processed 892,340 TEUs, marking the busiest June in the port’s 117-year history.

The surge in activity came as the U.S. lowered tariffs on Chinese goods after the two sides negotiated a trade deal. May imports had slumped 30% after President Donald Trump raised tariffs to a steep 145%.

“Some importers are bringing in year-end holiday cargo now ahead of potential higher tariffs later in the year,” said Port of Los Angeles Executive Director Gene Seroka. “July may be our peak season month as retailers and manufacturers bring orders in earlier than usual, then brace for trade uncertainty.

Retail sentiment on Stocktwits about SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was in the ‘neutral’ territory at the time of writing.

Bobby Djavaheri, the President of Los Angeles-based Chinese goods importer Yedi Houseware, said during a media briefing alongside Seroka that he has raised prices by about 10% and absorbed the rest of the tariff costs so far. However, he warned that a shortage of several electronic products is expected this year.

The warnings come amid fresh tensions between the United States and its trading partners as the Aug. 1 deadline for trade deals approaches. Trump has already unveiled tariffs on several countries, including Mexico, Canada, Japan, and the European Union, if they fail to reach an agreement with Washington, DC.
 
The iShares China Large-Cap ETF (FXI) has risen nearly 23% this year, compared with 6% gains in the SPDR S&P 500 ETF.

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