Ocean imports to the United States may have peaked in July after retailers raced to bring in goods from China and elsewhere to avoid potentially hefty tariffs on holiday-related products, the top executive from the busiest U.S. seaport said on Wednesday.
Containerized imports to the Port of Los Angeles, the front door to many U.S. imports, jumped 8% to 544,000 20-foot equivalent units (TEUs) in July.
"Much of this volume was fueled by importers hustling to bring in cargo ahead of potential tariff hikes later this month and beyond," Gene Seroka, the port's executive director, said on Wednesday.
"Everything is already here for the holiday season," said Zachary Rogers, lead author of the Logistics Managers' Index, which serves as an early indicator for economic activity in the United States.
President Donald Trump's tariff policies, particularly short-lived 145% levies on goods from China, have wrecked havoc on U.S. imports as buyers either gorged on or starved themselves of goods to avoid higher import duties.
The United States and China earlier this week extended their tariff truce by another 90 days, easing the uncertainty clouding the retail peak season for stocking stores with holiday goods.
As a result, major shippers like Walmart, Target and Home Depot appear to be breaking the traditional holiday-related import pattern that tended to peak from August to October.
(Reuters)