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U.S.-China Tariff Truce Promises Relief and Challenges for Southern California Ports

A 90-day pause in tariffs sets the stage for a surge in imports, testing strained supply chains and consumer markets already grappling with economic fallout.

San Pedro, CA – January 31: Port of Los Angeles Executive Director Gene Seroka delivers the ninth annual State of the Port of Los Angeles and outlines the priorities of 2024 in San Pedro on Wednesday, January 10, 2024. (Photo by Brittany Murray/MediaNews Group/Long Beach Press-Telegram via Getty Images)
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Shipping containers are seen at the port of Oakland, as trade tensions continued over U.S. tariffs with China, in Oakland, California, U.S., May 12, 2025. REUTERS/Carlos Barria
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Overview

  • The U.S. and China have agreed to a 90-day suspension of tariffs, temporarily halting a trade war that has disrupted cargo traffic at the Ports of Los Angeles and Long Beach.
  • Port activity has fallen by approximately 35% in May, with 17 planned voyages canceled, causing job losses for dockworkers and truckers and raising concerns over consumer price increases.
  • Port of Los Angeles CEO Gene Seroka warns that without a sustained trade resolution, inventories could deplete within weeks, leading to empty shelves and higher prices for consumers.
  • California Governor Gavin Newsom has filed a lawsuit challenging the tariffs, arguing they require congressional approval and pose significant risks to the state’s economy, the largest in the U.S.
  • Port officials emphasize the opportunity to expand American exports, particularly agricultural goods, as a way to offset import shortfalls and support domestic industries.