May 7, 2025
Officials feel American consumers are going to have to make some decisions as in a matter of weeks, they will witness the cost of goods increase.
As the first boats carrying goods from China with 145% tariffs arrive at the Port of Los Angeles with shipments cut in half, executives warn of expected consumer shortages “soon,” CNN reports.
The ships carry the first round of products subject to the stiff tariffs amid the growing trade war between the U.S. and China. Officials feel American consumers will have to make some decisions as, in a matter of weeks, they will witness the cost of goods increase, in addition to a risk of shortages. “This week, we’re down about 35% compared to the same time last year, and these cargo ships coming in are the first ones to be attached to the tariffs that were levied against China and other locations last month,” said Port of Los Angeles Executive Director Gene Seroka.
“That’s why the cargo volume is so light.”
Seroka says the drop-off in imports from China on the boats coming into the Port is more than 50%, as he suspects importers may have canceled previous orders since U.S. businesses aren’t interested in paying for the steep tariff. As a result, the price of Chinese goods may double. In May 2025, the Port expected close to 80 ships to arrive, but 20% of them canceled. Customers have already canceled 13 incoming ships for June. “And you still don’t know how long this is going to last,” he highlighted.
“Retailers and importers alike are telling me that the products now cost about two and a half times more than they did just last month.”
Other port executives like Port of Long Beach’s CEO Mario Cordero feel business will see a “precipitous” drop since July is known as peak shipping season, normally seeing an increase in activity, according to KTLA 5. But not this time around. “It’s a lack of clarity and what I’ve called a ‘radical’ uncertainty,” Cordero said. “If you’re a shipper and have products in China when there’s a 145% tariff, you’re going to want to wait if you believe this is going to be mitigated in the months to come.”
However, retailers are finding ways to get around the increased prices of Trump’s trade war. Ryan Petersen, CEO of Flexport, a logistics and freight forwarding broker, reveals a number since it’s cheaper than paying the tariff. However, that can cause a vast delay in delivery, as much as 60%, since importers and retailers are unwilling to pay the tariff cost. ”A 60% decline in containers means 60% less stuff arriving,” Petersen said.
“It’s only a matter of time before they sell through existing inventory, and then you’ll see shortages. And that’s when you see price hikes.”
RELATED CONTENT: How Businesses Are Starting To Feel The Effects Of Trump’s Tariffs
