Trump tariff hikes hit U.S. port industry, triggering cargo declines

The port industry in the United States is facing a dual blow as aggressive tariff policies under President Donald Trump continue to rattle supply chains and push up the costs of importing essential port-related equipment.

From plunging cargo volumes to a looming equipment cost crisis, the ripple effects are spreading from Los Angeles to Oakland.

While the administration frames the tariffs as a strategic move to bolster American industry, port officials warn they are dismantling one of the country's most critical economic arteries.

Inbound container shipments at the Port of Los Angeles plunged by as much as 30 percent in early May, a sharp decline attributed to the disruptive impact of Trump's tariff hikes, Bloomberg reported.

Port of Los Angeles Executive Director Gene Seroka underscored the immediate consequences of Trump's erratic trade policies and tensions with China, which accounts for nearly 45 percent of the port's business.

"Fewer containers mean less work on the waterfront, from the number of labor gangs that are out there responding to the shift requirements of cargo to the truckers and warehouse workers," Seroka said in a Monday briefing. "The impact was felt almost immediately during that first week of May."

In contrast, April data painted a temporarily brighter picture, with the port moving 9.5 percent more container units than the same time last year. Imports rose by five percent, an uptick Seroka credited to importers racing to get goods in before tariffs took effect.

China and U.S. reached a temporary 90-day tariff reprieve, which may see a short-term rebound of trade activity in June and July. However, long-term cargo volumes remain in question, with unpredictable trade policies and widespread shipment cancellations. According to Seroka, of the 80 scheduled sailings this month, 17 have already been canceled, with another 10 expected to be scrubbed in June.

Neighboring ports are also feeling the squeeze. The Port of Long Beach, which shares Southern California's San Pedro Bay with Los Angeles, anticipates a 10-percent drop in imports in May.

"After moving the most containerized cargo of any American port in the first quarter of 2025, we are now anticipating a more than 10 percent drop-off in imports in May – and the effects will be felt beyond the docks," Port of Long Beach CEO Mario Cordero said last week.

Further north, the Port of Oakland reported a 14.7-percent cargo volume drop from March to April, driven by falling export demand and continued trade instability.

Adding to the crisis is a new proposal by the U.S. Trade Representative to impose tariffs of up to 100 percent on Chinese-made cranes, containers, chassis and related port equipment. According to the American Association of Port Authorities (AAPA), the move would cost U.S. ports an estimated $6.7 billion.

The AAPA, joined by other stakeholders, is urging the government to delay implementation until a viable domestic crane manufacturing industry exists. Currently, no American companies produce ship-to-shore cranes. The AAPA said, of the 55 cranes now on order by U.S. ports, 44 are being built in China. Over the next decade, ports expect to need 151 more cranes – 121 of which are expected to come from China.

Altogether, these orders represent $2.5 billion in investment. With the new tariffs, that figure could balloon due to the added costs. The AAPA has requested that all orders placed before April be exempt from the proposed tariffs.

"American ports need these cranes now, but they simply cannot afford [the] unexpected costs," AAPA said. "They cannot back out of these purchases."

Port leaders also warn that alternatives are limited. Seroka noted that while operators could turn to European or Japanese manufacturers, options are scarce, and building a U.S. supply chain from scratch would take at least a decade. Compounding the issue, construction materials like steel and aluminum – also tariffed – are growing more expensive. 

Cary Davis, AAPA president and CEO, echoed the urgency: "High tariffs on ship-to-shore cranes, without affordable alternatives from either domestic or allied sources, function as a crippling tax on port development and seriously threaten our nation's ability to expand cargo movement."