Imports at Los Angeles, the busiest U.S. seaport, rebounded in June as retailers ramped up goods for the holiday season amid tariff concerns. The port processed 470,450 20-foot equivalent units (TEUs) of incoming cargo after a tariff truce between the U.S. and China. This was about 10% more than the previous year, marking a record volume for the month, according to Port of Los Angeles Executive Director Gene Seroka.
The June increase "highlights the tariff whipsaw effect" due to U.S. tariff policy, Seroka noted. The month's results rose 32% from May, after temporary tariffs affected imports from China. "We're seeing a peak season push right now to bring in goods ahead of potentially higher tariffs later this summer," Seroka stated, adding that holiday cargo orders from China should already be placed. "What's going to be on its way is what we're going to get. It's too late to try to negotiate orders at this point for that year-end product."
Given the potential for tariff hikes and order timing, U.S. ocean imports may decline later this summer. The National Retail Federation forecasts double-digit percentage drops in U.S. imports from August to November.
In recent developments, President Donald Trump threatened a 30% tariff on imports from Mexico and the European Union, starting August 1, escalating trade tensions. Los Angeles-based Yedi Houseware has already responded by increasing prices by about 10% while absorbing additional costs, as stated by President Bobby Djavaheri. The company supplies items such as air fryers and rice cookers to retailers like TJ Maxx and Ross Dress for Less.
Djavaheri highlighted prioritizing products known as stock-keeping units (SKUs) that quickly sell and yield higher profits. Regarding Yedi's small electronics, "half of the SKUs won't be available this year," Djavaheri mentioned.
Source: Reuters
