U.S. tariff hike hits Port of Los Angeles, sparking job loss fears and price hikes

The bitter consequences of the U.S. government's tariff policies are becoming increasingly evident at the Port of Los Angeles, the nation's largest and once-busiest container port. It has received the first shipments of Chinese goods subject to tariffs as high as 145 percent.

"This week, we're down about 35 percent compared to the same time last year, and these cargo ships coming in are the first to be affected by the tariffs imposed on China and other regions last month," Gene Seroka, executive director of the Port of Los Angeles, told CNN on Tuesday. "That's why the cargo volume is so light.”

Seroka noted that while the port had anticipated the arrival of 80 ships in May, 20 percent of those sailings have been canceled as U.S. companies scale back purchases of Chinese goods in response to the tariffs.

"Retailers and importers alike are telling me that products now cost about two and a half times more than they did just last month," he added.

In an interview with NPR, Seroka emphasized that the cargo moving through the Port of Los Angeles reaches not only all 50 states, but also 435 congressional districts – highlighting the port's critical role in the economy of the city, the region, and the country as a whole.

He also warned that the duration of the situation remains uncertain.

The sharp decline in cargo volumes has serious implications: U.S. dockworkers are facing diminishing job opportunities, while consumers could experience higher prices and shortages within weeks as inventories stockpiled before the tariffs were imposed begin to run out.

Sal DiCostanzo, a member of the International Longshore and Warehouse Union, drew attention to the unusually empty berths and stressed that many people remain unaware of the severity of the situation in an interview with consultancy firm CTOL Digital Solutions.

He explained that the current conditions threaten the livelihoods of some 900,000 Southern California workers.

According to CTOL Digital Solutions, economic modeling suggests that for every 1 percent drop in container volume, the region loses approximately 2,800 jobs.

The impact is being felt beyond the docks. Local businesses, such as nearby coffee shops, are also suffering. One cafe owner noted that 80 percent of her customers were once dockworkers, but now her shop stands nearly empty. She directed a pointed question at the Trump administration: "Where are the jobs you promised?"

In addition to the job losses, Ryan Petersen, CEO of Flexport – a logistics and freight forwarding company – told CNN that with importers and retailers reluctant to absorb the steep costs, deliveries could fall by as much as 60 percent.

"A 60 percent decline in containers means 60 percent less stuff arriving," Petersen explained. "It's only a matter of time before existing inventory sells through – and then you'll see shortages. That's when prices will spike."

The National Retail Federation expects U.S. imports to fall by at least 20 percent year over year in the second half of 2025.

While Seroka doesn't foresee completely empty store shelves, he does predict fewer choices for consumers.

"So if you're looking for a certain type of pants, you may find plenty of pants – but not the exact kind you want. And the kind you do want will come at a higher price," Seroka said.

(With input from agencies)