Volume at one of the busiest ports in the U.S. could drop dramatically as the trade war with China escalates, its executive director says.
In an interview with CNBC on Monday, Port of L.A. Executive Director Gene Seroka said he expects shipping to plummet as much as 35%, which can affect inventory on store shelves as the summer season begins.
Shipments from China make up nearly half of the business done at the Port of L.A., Seroka said. Last month, President Donald Trump hit China with a 145% tariff, sharply raising prices on goods coming from the manufacturing-based Chinese economy.
As a result, many American retailers have downsized its orders from China. The impact could see a shortage of goods on store shelves, experts warn.
Trump says one of the goals of tariffs is to bring manufacturing jobs back to the U.S. That’s easier said than done, Seroka says, and could take time while Americans pay higher prices on imports.
“Even if there was a decision to put a factory in the U.S. right now today, it probably takes about 5 years,” he said. “If it does open its doors, it’s probably automated with robotics and very few workers.”
The Longshore union, which represents workers at ports across the country, has blasted the tariffs as anti-working class.
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