- May imports to Port of Los Angeles down 9% year-on-year.
- Incoming cargo due to rebound after China tariffs lowered to 30% from 145%.
- Industry expects 2025 forecasts to decline from 2024 level.
Imports through the Port of Los Angeles, the busiest container port in the United States, dropped by 9% year-on-year in May, marking the lowest monthly volume in more than two years, reports Reuters.
May Imports at Busiest U.S. Seaport Drop 9%
The sharp decline came in the wake of steep 145% tariffs imposed on a range of Chinese goods, which triggered significant supply chain disruptions. Key importers including major U.S. retailers and automakers felt the immediate impact, particularly for products such as toys, furniture, and auto parts that rely heavily on manufacturing in China.
The effects were not limited to Los Angeles. Across the country, ocean-borne imports from China fell by 28.5% compared to the same month last year. Other major ports also reported double-digit declines, with Long Beach down 20.9%, Seattle down 17.3%, Tacoma down 39.4%, and New York/New Jersey down 15.3%. The data underscores how sudden changes in trade policy can ripple through logistics networks and impact consumer-facing industries.
In response to the trade turbulence, negotiators from the U.S. and China reached a temporary agreement in May, suspending the 145% tariff for 90 days and lowering the rate to 30%. While the easing spurred a short-lived surge in container bookings, industry experts remain cautious about the pace of recovery. Even at 30%, the elevated tariffs continue to suppress overall import demand and discourage volume growth.
Officials at the Port of Los Angeles have acknowledged the severity of the slowdown. The executive director noted that May recorded the weakest monthly throughput in more than two years. Looking ahead, expectations for a significant rebound remain muted, with modest volume projected for the remainder of 2025. The combination of ongoing trade uncertainty and cost pressures is expected to keep import activity subdued.
Globally, the impact of trade frictions and shifting supply chains could lead to a broader contraction in containerized shipping. Industry forecasts suggest that overall global container volumes may decline slightly this year as companies reassess sourcing strategies and adapt to a more protectionist trade environment.
The tariff-driven slowdown in U.S.-China trade has had an immediate and measurable impact on seaport activity. While recent policy shifts may offer temporary relief, businesses and logistics operators are likely to face continued challenges through the second half of the year.
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Source: Reuters
