Port of L.A. executive director: 30% tariff with 90-day pause is not going to create a cargo surge

About this Video

• Video Title: Port of L.A. executive director: 30% tariff with 90-day pause is not going to create a cargo surge
• Channel: CNBC Television
• Speakers: Gene Seroka, David, Mike
• Duration: 00:06:06

Introduction

This CNBC Television interview features Gene Seroka, the Port of Los Angeles executive director, discussing the impact of a 30% tariff on Chinese imports, coupled with a 90-day pause. The main purpose is to analyze the expected effects on cargo volume at the Port of Los Angeles and the broader implications for the US economy.

Key Takeaways

• Significant Cargo Decrease: A 25% decrease in expected cargo for May is reported, second only to the 50% drop experienced during the COVID-19 pandemic in March 2020. Numerous ship services have been canceled.
• Limited Surge Anticipated: Despite a 90-day tariff pause, a significant cargo surge is not expected due to the overall 30% tariff average still in effect.
• Impact on Small Businesses: The tariff reduction's impact on small and medium-sized importers is a major concern, as they may struggle to absorb increased costs and compete with larger companies.
• China's Dominant Role: China accounts for 45% of the Port of Los Angeles' business, highlighting its significant influence on the port's operations.
• Longshoremen's Influence: The International Longshore and Warehouse Union's vocal opposition to the tariffs played a role in bringing attention to their economic impact.