Chief of major US port shares grim warning about Chinese shipments due to Trump tariffs

Shipments from China to the West Coast are poised to plunge by as much as 35% as President Donald Trump’s newly imposed tariffs prompt major American retailers to slash import orders, the executive director of the Port of Los Angeles said Tuesday.Gene Seroka, who runs the nation’s largest port by container volume and cargo value, told CNBC’s “Squawk Box” on Tuesday that he expects a dramatic decline in incoming cargo volume next week, with projections showing a drop of more than a third compared to the same period in 2024.“According to our own port optimizer, which measures the loadings in Asia, we’ll be down just a little bit over 35% next week compared to last year.And it’s a precipitous drop in volume with a number of major American retailers stopping all shipments from China based on the tariffs,” Seroka said.Shipments from China currently account for about 45% of the Port of LA’s business.However, some transport companies are seeking to offset losses by picking up goods at other points in Southeast Asia, Seroka noted.“Realistically speaking, until some accord or framework can be reached with China, the volume coming out of there — save a couple of different commodities — will be very light at best,” he added.The port is also bracing for a major pullback in shipping activity overall.Seroka said roughly a quarter of the usual number of arriving ships is expected to be canceled in May.The slowdown comes as the latest escalation in the US-China trade conflict begins to bite.Trump announced a sweeping tariff hike on Chinese goods on April 2, triggering retaliatory measures from Beijing.Both countries have now imposed tariffs of more than 100% on many imports, and Treasury Secretary Scott Bessent has called the situation “unsustainable.”So far, however, there have been no signs of meaningful negotiations to de-escalate the dispute.Shipping data had already shown early indications of slowing trade flows from China to the US, raising al...