Port of LA’s Cargo Crisis: How Trump’s Tariffs Are Still Screwing Things Up
Let’s Talk About the Elephant in the Room
You know the Port of Los Angeles, right? That massive gateway where nearly half of America’s imported stuff comes through? Well, it’s in trouble—big time. Cargo volumes have nosedived by 35%, the worst drop since the 2008 crash. And here’s the kicker: Trump’s China tariffs are still messing things up, years later. Dockworkers are sweating, retailers are panicking, and honestly? It feels like we’re just seeing the start of something ugly.
The Numbers Don’t Lie (And They’re Ugly)
First quarter of 2022? Only 2.1 million TEUs moved through LA. Compare that to 3.2 million before the tariffs hit. That’s not just a dip—it’s a freefall. And get this: back in the pre-pandemic days, the port grew at a steady 5% each year. Now? Experts are saying we’ll be stuck in this slump till at least 2023. “This isn’t some temporary blip,” says Lori Smith, a shipping economist I spoke to. “Tariffs basically rewired how global trade works.” Scary stuff.
How Trump’s Trade War Backfired
Remember when those tariffs—some as high as 25%—were supposed to “bring manufacturing back to America”? Yeah, that didn’t happen. Instead, companies went into full panic mode. Some delayed shipments for months. Others rerouted everything to avoid fees. Take the roofing industry—steel prices shot up 28% almost overnight. Electronics got hammered too, with circuit boards suddenly costing an arm and a leg. A Home Depot exec put it bluntly: “We’re spending more to move less.” Ouch.
Dockworkers Are Getting Screwed
Fewer containers mean fewer paychecks for the guys unloading them. The longshore union says shifts have dropped 20% since 2020. Javier Rodriguez, a union rep, told me, “We’re looking at a workforce that’s getting hollowed out.” And here’s the real gut punch—this comes right after 2021, when these same workers were pulling insane overtime to clear the pandemic backlog. Now? They’re staring at robots that might take their jobs. Life comes at you fast.
Everyone’s Dodging LA Now
This part’s wild—shippers are straight-up avoiding Los Angeles. Places like Savannah and New York saw cargo jump 12% last year. Even Gulf Coast ports are getting in on the action. But here’s the thing: rerouting ain’t cheap. Sending a container to Houston instead of LA adds a week to the trip and tacks on $1,200. “The demand didn’t disappear,” a Maersk guy explained. “We just made the whole system way more complicated than it needed to be.” Classic.
Who’s Hurting the Most?
Construction Guys Can’t Catch a Break
Steel and aluminum tariffs jacked up material costs by 34% since 2018. Marco Ruiz, a contractor in LA, put it perfectly: “Try telling a homeowner their new roof just got $5,000 more expensive overnight.” Yeah, good luck with that.
Retail’s Playing a Dangerous Game
Sneakers, TVs, you name it—retailers ate some of the tariff costs but passed $78 billion to customers in 2021 alone. Now places like Target are stockpiling inventory before new tariffs hit. Risky move. If demand drops, they’re stuck with warehouses full of stuff nobody wants.
The Big Picture Looks Rough
LA’s struggles are part of a global trend. The WTO thinks trade growth will crawl at 1.7% this year—half of what it was before the tariffs. Dr. Ellen Park from the Fed nailed it: “This is what protectionism buys you—a nasty hangover.” And with China cozying up to Southeast Asia instead of us? This mess might take years to clean up.
So What’s the Bottom Line?
That 35% drop at the Port of LA? It’s not just some abstract number. It’s dockworkers worrying about rent. It’s families paying more for everything. It’s proof that tariffs—no matter how tough they sound—usually end up hurting the people they’re supposed to help. And with Biden keeping most of Trump’s tariffs in place? Buckle up. The ports will tell us first when the next shoe drops.
