- Long Beach Mayor Calls Ongoing Situation a Crisis.
- Industry Leaders Warn of Job Losses and Disruptions.
- Port Officials Say Tariff Effects Will Take Months.
President Donald Trump provided West Coast ports a reprieve on Monday by agreeing to roll back tariffs temporarily on Chinese imports, from 145 per cent to 30 per cent. This action notwithstanding, port officials and union leaders warn that problems still hang over the shipping sector, reports Politico.
Long Beach Mayor: This is still a crisis
During a Monday press conference in Long Beach, Mayor Rex Richardson underscored the ongoing pressure for Long Beach industries, even as he spoke of a new report exhibiting the Port of Long Beach’s economic value. “This is still a crisis,” Richardson told the Long Beach Press Telegram.
Despite the tariff change, there is still unrest in the shipping and logistics industry, specifically at the Port of Long Beach and the Port of Los Angeles—the two busiest ports in the U.S. Almost a dozen vessels have already cancelled their route from China, cutting down work available to California workers.
Shipping and Agriculture Industries Bear Witness
In Sacramento, California, Treasurer Fiona Ma held a hearing whereofficials from the agricultural and shipping industries voiced growingalarm at cancelled orders and job losses. “I’m just going to be really frank, I don’t know what Trump is trying to do,” she said.
“If there is a belief that creating disruption and leverage is going to create opportunity, I love your hope. However, that’s not real, right? Disruption in the market just causes disruption.”
Tariff Impacts Could Take Months to Materialise
Mario Cordero, CEO of the Port of Long Beach, noted that the port may not immediately feel the effects of the tariff rollback. “We’re still in an uncertain period,” he said.
“It would take one to two months for the latest change in tariffs between the U.S. and China to show up in port activity.”
Short-Term Surge in Import Volumes
Mike Jacob, president of the Pacific Merchant Shipping Association, attributed a recent spike in port activity to last month’s 90-day reprieve. “We do expect there will be some hiccups because the supply chain works best when it’s steady and measured, and what’s been happening now is anything other than steady and measured,” he said.
Despite the volatility, he acknowledged a brief silver lining. “People have gone from talking about, ‘How many layoffs am I going to have to do?’ to ‘How am I going to handle additional cargo?’” he added.
Local Officials Say the Damage is Already Done
Though the latest policy shift offers some hope, local leaders are still grappling with prior disruptions. “The damage is done,” Richardson said.
“We’ve seen ships that never sailed.”
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Source: Politico
