Port Of LA Shipments Plunge As Trump Tariffs Bite: Industry Warns Against Hitting Chinese Cranes

The port of Los Angeles, one of the top destinations for shipping containers, saw a 30% drop in imports in early May as the impact of steep tariffs on Chinese goods weighed in.

"The May volume drop is likely to be substantial when we close the books on this month," Port of Los Angeles Executive Director Gene Seroka told reporters, according to Reuters.

The sharp drop came after U.S. importers began delaying or canceling shipments coming from China as Donald Trump’s 145% tariffs on Chinese goods came into effect.

The Port of Los Angeles and the nearby Port of Long Beach handle 31% of the U.S. freight traffic.

“After moving the most containerized cargo of any American port in the first quarter of 2025, we are now anticipating a more than 10% drop-off in imports in May — and the effects will be felt beyond the docks,” Port of Long Beach CEO Mario Cordero had said last week, according to a Bloomberg report.

The gloomy projections show the extent of the brief tariff war's impact on imports.

While the U.S. and China paused reciprocal tariffs on each other for 90 days, Seroka said that it would not result in a surge in imports.

"You won't see a deluge of freight here at the Port of Los Angeles," He said.

However, the Los Angeles port head still expects to see an uptick in volumes in June and July as importers try to bring the goods stored in warehouses amid “sky-high” tariffs.

While the ports grapple with uncertain trade policy, a 100% tariff on Chinese-made cranes could result in further problems.

Cary Davis, the CEO of the American Association of Port Authorities, testified that the tariffs could add $6.7 billion in costs to U.S. cargo handling facilities and prevent them from investing in infrastructure development.

“Ports would have no choice but to pay these tariffs or drastically scale back their port modernization plans,” Davis reportedly said.

The iShares China Large-Cap ETF (FXI) has gained 19.3% year to date (YTD), while the Invesco QQQ Trust Series 1 (QQQ) and SPDR S&P 500 ETF (SPY) have risen 1.5% and 0.9%, respectively.

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