Welp agent urnge's recession is here. Good luck everyone.
By Tom Wait
Updated on: April 24, 2025 / 8:58 PM PDT / KCAL News
The impacts of President Trump's tariff war have arrived at the Ports of Los Angeles and Long Beach, with the two biggest drivers of the Southern California economy expecting a catastrophic downturn in the coming weeks.
"For the week beginning May 4, San Pedro Bay complex looks like it's going to have a 44% drop in vessel calls when you compare that year-to-year," Port of Long Beach CEO Mario Cordero said. "That's a significant number."
The ports rely heavily on imported goods arriving from China, which President Trump levied tariffs of up to 145% against.
"I think what we're going to look to now in the second quarter of 2025 and also the third quarter, a substantial reduction in cargo volume," Cordero said. "As you know, our imports here at the Port of Long Beach overwhelmingly come from Asia, more specifically China."
A new report from the LA County Economic Development Corporation laid out sobering new numbers detailing the impacts of President Trump's trade war. They report states that the tariffs threaten $500 billion in revenue for the region and put 2 million local workers at risk.
"The World Trade Organization estimated that if this trade war with China continues, they're expecting the U.S. and China trade to decrease by approximately 80%," LAEDC CEO Stephen Cheung said.
Business leaders are concerned about a ripple effect that would harm the local economy.
"One thing that I think is anecdotal but it's really recent, is that we've had multiple lease deals on industrial properties in the Inland Empire and in the South Bay get paused," developer Jeff Jennison said.
Professor of economics Larry Harris explained that even if tariffs ultimately convinced manufacturers to move production here, prices would still be higher.
"If indeed production moves to the U.S., prices will be higher too," he said. "The reason why is that for the items that are not produced in the U.S., the reason they're not produced in the U.S. is because we can produce them as cheaply as other people can."
In the end, Cordero said that fewer cargo arriving at the ports results in fewer jobs and a crushing blow to Southern California's economy.
"The fundamental view from a Port Authority perspective is less cargo volume, less jobs. That's the rule here," Cordero said. "History tells you that proves to be the case. One in nine jobs in the region of Greater Los Angeles are from the port complex — 2.6 million through the U.S. supply chain are directly or indirectly from Port of Long Beach operations. It's a significant number."
The Port of Long Beach also cited another key metric: sailing from carriers that have been canceled or postponed because of a lack of volume are now at levels not seen since the COVID-19 pandemic.
Jennison also warned that with companies canceling warehouse leases, could ultimately lead to more job cuts as there wouldn't be a need for security, insurance or even IT.
www.cbsnews.com
By Tom Wait
Updated on: April 24, 2025 / 8:58 PM PDT / KCAL News
The impacts of President Trump's tariff war have arrived at the Ports of Los Angeles and Long Beach, with the two biggest drivers of the Southern California economy expecting a catastrophic downturn in the coming weeks.
"For the week beginning May 4, San Pedro Bay complex looks like it's going to have a 44% drop in vessel calls when you compare that year-to-year," Port of Long Beach CEO Mario Cordero said. "That's a significant number."
The ports rely heavily on imported goods arriving from China, which President Trump levied tariffs of up to 145% against.
"I think what we're going to look to now in the second quarter of 2025 and also the third quarter, a substantial reduction in cargo volume," Cordero said. "As you know, our imports here at the Port of Long Beach overwhelmingly come from Asia, more specifically China."
A new report from the LA County Economic Development Corporation laid out sobering new numbers detailing the impacts of President Trump's trade war. They report states that the tariffs threaten $500 billion in revenue for the region and put 2 million local workers at risk.
"The World Trade Organization estimated that if this trade war with China continues, they're expecting the U.S. and China trade to decrease by approximately 80%," LAEDC CEO Stephen Cheung said.
Business leaders are concerned about a ripple effect that would harm the local economy.
"One thing that I think is anecdotal but it's really recent, is that we've had multiple lease deals on industrial properties in the Inland Empire and in the South Bay get paused," developer Jeff Jennison said.
Professor of economics Larry Harris explained that even if tariffs ultimately convinced manufacturers to move production here, prices would still be higher.
"If indeed production moves to the U.S., prices will be higher too," he said. "The reason why is that for the items that are not produced in the U.S., the reason they're not produced in the U.S. is because we can produce them as cheaply as other people can."
In the end, Cordero said that fewer cargo arriving at the ports results in fewer jobs and a crushing blow to Southern California's economy.
"The fundamental view from a Port Authority perspective is less cargo volume, less jobs. That's the rule here," Cordero said. "History tells you that proves to be the case. One in nine jobs in the region of Greater Los Angeles are from the port complex — 2.6 million through the U.S. supply chain are directly or indirectly from Port of Long Beach operations. It's a significant number."
The Port of Long Beach also cited another key metric: sailing from carriers that have been canceled or postponed because of a lack of volume are now at levels not seen since the COVID-19 pandemic.
Jennison also warned that with companies canceling warehouse leases, could ultimately lead to more job cuts as there wouldn't be a need for security, insurance or even IT.
LA County ports expect roughly 40% drop in traffic as Trump's tariffs continue
A report from the LA County Economic Development Corporation said the tariffs threaten $500 billion in revenue for the region and put 2 million local workers at risk.
www.cbsnews.com
Chinese exports to U.S accounted for just 2.4% percent of GDP. 
