Imports to the busiest U.S. seaport in Los Angeles rebounded strongly in June as retailers moved to stock up on goods for the holiday shopping season amid fears of higher tariffs.
The Port of Los Angeles handled 470,450 20-foot equivalent units (TEUs) of incoming cargo last month after the U.S. reached a tariff truce with China. That was almost 10% higher than a year ago and contributed to record total volume for the month, Port of Los Angeles Executive Director Gene Seroka said.
The June surge "highlights the tariff whipsaw effect" from U.S. tariff policy, Seroka said. Last month's result was up 32% from May, when short-lived 145% import duties on China pummeled that trade.
"We're seeing a peak season push right now to bring in goods ahead of potentially higher tariffs later this summer," he said, noting that year-end holiday cargo orders should already be in with China manufacturers.
"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 in time for that year-end product."
Due to potential tariff increases and order timing, U.S. ocean imports are likely to start dropping later this summer. The National Retail Federation (NRF) has forecast double-digit percentage declines in U.S. imports from August through November.
President Donald Trump on Saturday threatened to impose a 30% tariff on imports from Mexico and the European Union beginning August 1, in the latest escalation of his trade war.
Los Angeles-based Yedi Houseware already has raised prices about 10% and absorbed the rest of the tariff cost, President Bobby Djavaheri said.
The company supplies China-made air fryers, rice cookers and other kitchen goods to retailers including TJ Maxx TJX.N and Ross Dress for Less ROST.O. Like many others, it is prioritizing products - referred to as stock keeping units (SKUs) - that sell quickly and reap the highest profits.
When it comes to Yedi's small electronics, "half of the SKUs won't be available this year," Djavaheri said.
(Reuters)