The Trump administration’s tariffs are already having an influence on the nation’s ports. NPR’s Ayesha Rascoe speaks with Mario Cordero, CEO of the Port of Lengthy Seaside, concerning the impact.
AYESHA RASCOE, HOST:
Main ports up and down the West Coast are bracing for the complete influence of the Trump administration’s tariffs. The variety of ships arriving is anticipated to drop dramatically, and the impact will likely be particularly placing in Southern California. Los Angeles and Lengthy Seaside are the nation’s two busiest ports, processing round a 3rd of all cargo containers arriving from abroad, an enormous variety of them from China. Becoming a member of us now’s Mario Cordero, CEO of the Port of Lengthy Seaside. Welcome to this system.
MARIO CORDERO: Effectively, thanks for inviting me right here, Ayesha.
RASCOE: So are you able to give us a way of what is taking place proper now together with your port?
CORDERO: Effectively, I feel the story of the day for the Port of Lengthy Seaside is we’re beginning to see much less vessel arrivals, which suggests much less cargo. And naturally, that interprets to doubtlessly much less jobs and an influence to shoppers. In different phrases, they could not have their merchandise in a pair months except issues change.
RASCOE: And so, I imply, how a lot of a drop are you seeing proper now?
CORDERO: Effectively, proper now, the primary drop that we’re seeing really goes to be right here within the month of Might. Remember the fact that for the primary quarter 2025 – that’s, January via March – the Port of Lengthy Seaside moved extra container cargo than every other port within the nation. So we have been definitely on a really high-volume motion. April was first rate, however now Might, we’ll begin seeing discount. For the second half of 2025, we’re trying to not less than a 20% discount in quantity.
RASCOE: And the way are you aware that? Is it due to, like, contracts, or are these items deliberate out means upfront?
CORDERO: Effectively, there’s two metrics that offer you a sign. One, the diminished bookings which can be popping out of Asia – there are importers now right here within the USA that aren’t calling for orders from Asia. They’re ready on the sideline to see the place this tariff quantity falls or extra readability as a result of proper now, there’s a number of uncertainty when it comes to what that tariff quantity will likely be on the finish of the day. No. 2, as of proper now, our numbers via the month of June point out that the carriers have had 34 clean sailings. What that mainly means, 34 much less vessels which can be coming into the port advanced.
RASCOE: And what influence does this have on the broader port economic system?
CORDERO: Until issues change, you’re going to have an effect when it comes to job discount throughout the provision chain, whether or not it is dock staff right here on the port, truck drivers, individuals who work within the warehouses and/or on a logistics provide chain. So we have already got seen what that’s within the COVID-19 disaster, when you recall when, throughout the COVID years, notably within the latter a part of 2020, 2021, all the pieces got here to a cease, so to talk.
RASCOE: These provide chain disruptions throughout COVID led to increased costs. After which there have been additionally issues about, like, Christmas presents and stuff like that, whether or not you’d simply be capable to get fundamental provides. Is that one thing that might occur this time round?
CORDERO: There’s a potential of that occurring. So let me offer you an instance. On this trade, after we speak about peak season, that’s the time of 12 months the place cargo actually is available in at increased numbers. Yearly, yearly, that begins round July, and the reason being as a result of from July to August, you are trying to advance merchandise coming into the nation in preparation for the back-to-school spending and the vacation spending. Starting July – that is going to be important as a result of when you’re a shipper and also you’re importing vacation sort of merchandise and even back-to-school, are you going to be paying 10%, or are you going to be paying 46% of tariffs or, within the case if it is from China, 145%? It is a situation proper now that point’s ticking, so to talk, to get readability and take away uncertainty, and I feel that is all of the enterprise sectors are asking for at this level.
RASCOE: So the Trump administration is saying it needs to do a take care of China. If that occurs, do you suppose that there will likely be an enduring influence of those tariffs, or if they arrive out with a deal, will all the pieces form of simply get again to regular?
CORDERO: Effectively, No. 1, we have been dwelling in a tariff setting. If you happen to recall, within the first Trump administration, there was an implementation of tariffs. The Biden administration mainly adopted that. I feel the query now’s, the percentiles that we’re speaking about are generally prohibitive, particularly the smaller shipper, the midsized shipper and even the bigger helpful cargo proprietor. And also you begin seeing daily you take heed to the information, CEOs of main corporations are involved. Among the larger gamers when it comes to shipments – they’re trying to maybe a 100 million to a 300 million further price on merchandise. And that is regarding as a result of it should get handed all the way down to the patron. So when you get an instance of a Nike shoe, so to talk, that shoe that might price you $125 might now be not less than $165.
RASCOE: You stated the time is ticking. Is there a time by which you suppose that corporations want these tariffs, no matter deal goes to be made, to be made so that they have that readability? Like, is it by July? Is it by June? When does this must be completed?
CORDERO: Really, the month of Might could be very key as a result of while you begin reserving shipments of merchandise, you do this two months in anticipation. So when you’re trying to getting a product in July, you must begin making this order now. So I feel the inflection level right here is now within the subsequent 30 days.
RASCOE: That is Mario Cordero, CEO of the Port of Lengthy Seaside. Thanks a lot for becoming a member of us.
CORDERO: My pleasure.
Copyright © 2025 NPR. All rights reserved. Go to our web site phrases of use and permissions pages at www.npr.org for additional data.
Accuracy and availability of NPR transcripts might range. Transcript textual content could also be revised to right errors or match updates to audio. Audio on npr.org could also be edited after its authentic broadcast or publication. The authoritative file of NPR’s programming is the audio file.
