China and the U.S. have agreed to a 90-day pause on tit-for-tat tariffs which went up to 145 per cent placed on Chinese goods.Mike Blake/Reuters
Imports to the busiest U.S. seaport at Los Angeles dropped nine per cent year-on-year in May, offering insight into how many shipments were cancelled or put on hold after President Donald Trump slapped tariffs of 145 per cent on goods from China.
China is the top U.S. supplier of sea-borne goods, and Los Angeles is the No. 1 port for those imports. Domestic businesses ranging from retailer Walmart to automaker Ford rely on the toys, furniture and auto parts that land on its docks.
The Port of Los Angeles handled the equivalent of 355,950 20-foot shipping containers of imports in May, when the 145 per cent tariffs began to show up in data.
“May marked our lowest monthly volume in over two years,” said Gene Seroka, executive director of the Port of Los Angeles.
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The world’s two biggest economies last month agreed to a 90-day pause on tit-for-tat tariffs, and the U.S. lowered the duty on many China goods to 30 per cent from 145 per cent. The U.S. and China this week agreed to maintain that lower rate, potentially defusing their high-stakes trade dispute.
Port executives and shipping consultants expect volumes from China to rebound, albeit at a more moderate level as 30 per cent duties represent a significant cost increase for importers.
“I expect overall cargo flow to remain modest for the balance of 2025,” Seroka said.