According to the Port of Los Angeles, import volumes are expected to drop by 35% starting the week of May 5th. CNBC reported Gene Seroka, the port’s executive director, saying this was due to the impact of tariffs on Chinese goods and explained that many large U.S. retailers have halted shipments from China in response to the tariffs.

With Chinese cargo representing 45% of the port’s throughput, the impact is significant. Some businesses are turning to Southeast Asia to fill the vessels, however those goods are unable to compensate for the shortfall. 

The CNBC report added that Seroka issued warnings that without a new trade framework, the volume of goods from China will remain low. U.S. retailers may have about five to seven weeks of inventory, before fewer product choices and higher prices impact consumers.

Seroka also said imports at the Port of Los Angeles are projected to decline by at least 10% in the second half of this year.

Source: CNBC