The Port of Los Angeles, the busiest U.S. seaport, experienced a 9% decline in imports year-on-year in May, with muted activity expected to continue throughout much of 2025. This downturn follows President Trump’s imposition of a staggering 145% tariff on Chinese goods, prompting many companies to cancel or delay shipments.
As the primary U.S. supplier of seaborne goods, China’s trade relationship with the Port of Los Angeles is crucial, serving major domestic businesses including Walmart and Ford that rely on imports of toys, furniture, and auto parts. In May, the Port handled approximately 355,950 20-foot shipping containers, marking its lowest monthly volume in over two years, according to Gene Seroka, the executive director of the port.
He noted that many importers had “slammed on the brakes,” significantly affecting operations. The combined ports of Los Angeles and Long Beach account for 31% of the nation’s ocean trade, acting as a key indicator of U.S. economic health.
Long Beach has yet to report its May results but previously estimated a drop of over 10% in imports. Recently, the U.S. and China reached a 90-day pause on escalating tariffs, which has seen the duty on many goods from China reduced to 30%.
Following this adjustment, ocean shipping giant Maersk reported rising volumes from China to the U.S. While port executives anticipate a gradual rebound in Chinese imports, the 30% tariff still represents a significant cost increase for importers.
Seroka noted that cargo for June has returned to more standard levels, but he remains cautious about the overall economic outlook due to ongoing consumer demand volatility and the burden of higher costs. Analysts predict that tariffs may continue to impact consumer prices and inventory management for retailers, leading to a decline in imports through 2025.