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• Cargo volumes at the Port of Los Angeles have dropped by up to 35% due to tariffs.
• This decline is expected to impact businesses beyond the port area, affecting the broader economy.
• The drop is attributed to changes in global trade policies and their immediate effects on import and export activities.

Quick Brief

2-Minute Digest

Essential Context

The Port of Los Angeles, a critical hub for U.S. trade, is experiencing a significant decline in cargo volumes. This downturn, ranging from 13% to 35% depending on the week, is largely due to the imposition of new tariffs.

Core Players

• Port of Los Angeles – Major U.S. port handling over 50% of containerized imports in 2024.
• Gene Seroka – Executive Director of the Port of Los Angeles, highlighting the impact of tariffs.
• U.S. Trade Agencies – Implementing and managing trade policies affecting ports.

Key Numbers

• 35% – Maximum expected drop in cargo volumes at the Port of Los Angeles.
• 13% – Minimum expected drop in cargo volumes for certain weeks.
• 51% – Port of Los Angeles’ share of U.S. containerized imports in 2024.
• 924,245 TEUs – Total container volume at the Port of Los Angeles in January 2025.

Full Depth

Complete Coverage

The Catalyst

The recent imposition of tariffs has triggered a significant decline in cargo volumes at the Port of Los Angeles. This change in trade policy has immediate and far-reaching consequences for both local businesses and the broader U.S. economy.

“We’re seeing a drop of up to 35% in cargo volumes,” said Gene Seroka, Executive Director of the Port of Los Angeles, highlighting the severe impact of these tariffs.

Inside Forces

The Port of Los Angeles, which handled over 50% of the U.S.’s containerized imports in 2024, is particularly vulnerable to changes in global trade policies. The port’s operations are intricately linked with international trade, making it a bellwether for economic shifts.

The decline in cargo volumes affects not only the port’s operations but also the numerous businesses that rely on it, including logistics companies, warehouses, and retail outlets.

Power Dynamics

The implementation of tariffs has shifted the power dynamics in global trade. U.S. trade agencies now hold significant influence over the flow of goods, and their policies can drastically impact ports and related industries.

This shift also highlights the ongoing tensions between different countries and their trade policies, which can lead to further economic instability.

Outside Impact

The broader implications of this cargo decline extend beyond the port. It is expected to affect consumer prices, job markets, and overall economic growth. As the port’s activity decreases, it can lead to a ripple effect across various sectors of the economy.

Additionally, the impact on global supply chains could be significant, potentially leading to delays and shortages of goods.

Future Forces

Looking ahead, the situation at the Port of Los Angeles is likely to remain volatile. As trade policies continue to evolve, the port and related businesses will need to adapt quickly to new conditions.

Possible future developments include further adjustments in trade policies, potential retaliatory measures from other countries, and ongoing efforts to mitigate the economic impact of these changes.

• Adjustments in U.S. trade policies
• Retaliatory measures from other countries
• Economic mitigation strategies

Data Points

• May 1, 2025: Port of Los Angeles reports a potential 35% drop in cargo volumes due to tariffs.
• 2024: Port of Los Angeles handled 51% of U.S. containerized imports.
• January 2025: Total container volume at the Port of Los Angeles was 924,245 TEUs.
• 8.02%: Year-over-year increase in total TEUs at the Port of Los Angeles in January 2025.