Port of LA just had its best June on record as importers rushed to beat tariff deadlines

CNN

2 days ago

The Port of Los Angeles rebounded in June for a record-breaking month as importers raced to get cargo into the port before the 'reciprocal' tariff pause ended July 9, port executive director Gene Seroka announced Monday. President Donald Trump has since pushed that deadline to August 1.
The Port of Los Angeles, which gets more goods from China than any other country, saw an 8% jump in cargo from last June, the best on record, the port said. Five extra vessels not normally scheduled to arrive at the port helped boost volume.
'After a very slow start, the Port of Los Angeles bounced back strong in the second half of June,' Seroka said at the port's monthly media briefing. 'While record-setting volume is welcome news, it also highlights the tariff whipsaw effect.'
June's record volume also marks a 32% increase from May. Imports slowed after the Trump administration placed baseline tariffs on nearly every country around the world in April.
'When tariffs kicked in, imports slowed significantly in May and continued to drop through the first half of June — then with a pause on some tariffs — cargo began moving once again,' Seroka said.
Trump set a new deadline for reciprocal tariffs last week and has threatened higher tariff rates on dozens of countries since then. That includes a 30% tariff rate on the European Union and Mexico, 35% on Canada, 24% on Japan, 32% on Malaysia, and 50% on Brazil. The United States and China agreed to a framework trade agreement that imposed 30% tariffs on goods before an August 12 deadline.
The port is expecting a second surge in July as US businesses rush to get ahead of the higher tariffs. An additional seven vessels beyond normal volume, it says, will bring in cargo to beat the August 1 deadline on reciprocal tariffs.
'With pushing back the trade tariffs with nations around the world to August 1, were probably going to get one last push on imports coming to the United States, and doing as much as they can to sneak in under that new August 1 deadline,' Seroka said.
Seroka then expects a dip in volume in August. 'Retailers are unlikely to order high volume speculatively and risk deep discounts over the holiday season later this year. It's too late to try to negotiate orders at this point in time for that year end (holiday) product,' he said.
Despite the tariff turmoil, port volume in 2025 is tracking 5% ahead of this time last year.
Overall imports into the United States are expected to rise in July, but then fall by double digits through the end of the year, according to the National Retail Federation's port tracker.
'The tariff situation remains highly fluid, and retailers are working hard to stock up for the holiday season before the various tariffs that have been announced and paused actually take effect,' said Jonathan Gold, vice president for supply chain and customs policy at the National Retail Federation.
Gold said retailers have brought in as much merchandise as possible ahead of the reciprocal tariffs taking effect, and appreciates the August 1 extension.
'Nonetheless, uncertainty over tariffs makes it increasingly difficult for retailers to plan, especially small businesses that have no capacity to absorb tariffs,' he added
The tariffs set to increase in August will drive up prices for American consumers and impact availability of product on store shelves, the National Retail Federation said in its port tracker report.
The impact from the tariffs will be felt by consumers as soon as this month, according to John Zolidis, retail analyst and founder of Quo Vadis Capital, Inc., an investment advisory.
Zoldis expects to see prices increase within the next three to six week, mostly on infrequently purchased items, like backpacks for back to school.