The leaders of the Ports of LA and Long Beach say they welcome the temporary reduction in tariffs between the U.S. and China, but to avoid further uncertainty, they told reporters this week, both sides should work together to reach a more permanent agreement.
Business dropped significantly at the ports in recent weeks because of the original round of high tariffs imposed by the Trump administration on China.
Last Friday, zero ships left China for the West Coast of the United States. That hasn’t happened since the pandemic.
Even now, with the new, temporary agreement, officials say it could take weeks for business to pick up again. And there will still be uncertainty.
These ports are the largest in the Western Hemisphere: More than 60% of cargo to the Port of Long Beach, and more than 40% of cargo to the Port of LA, is from China.
Port officials say 1 in 9 jobs in Southern California are directly or indirectly related to port operations.
“ It's stark,” says Matt Schrap, CEO of the Harbor Trucking Association, which represents hundreds of trucking companies that transport shipping containers out of the Ports of LA and Long Beach, pointing out empty terminals where ships normally would be docking.
He says the number of “blank sailings” has been going up for weeks. That means entire cargo ships that would have been full of containers have canceled their voyages.
Businesses at the ports are used to ups and downs, Schrap says, but not fluctuations this big or this sudden.
Mario Cordero is the head of the Port of Long Beach. He hopes before the 90-day agreement between the U.S. and China expires, a permanent deal can happen.
“When you look at the U.S. and China put together, it's almost half of the global economy,” he says. “So at some point there's going to be a pragmatic approach and reasonable posturing.”
But even as the U.S. and China negotiate, in and around the ports, people are feeling the effects of that first harsh round of tariffs.
Union officials say there are hundreds fewer jobs available each day for dockworkers.
Truck drivers who usually haul garbage and recycling say they’re not getting enough work – because truck drivers at the ports who aren’t getting enough work are taking some of their gigs.
Jose Antonio says he might not be able to make his truck lease payment this month. And all his savings are gone.
“ The money is spent,” he says.
The drivers say they hope Trump can help them. When asked if they voted for Trump, they said they didn’t vote because they aren’t citizens yet. But, they say, they would have if they could.
“With Trump, we have something good and something bad,” says Moises De Leon.
Bad on immigration, he says. Good on the economy.
When asked if they would choose Trump now, knowing what’s happening with the economy, De Leon says, “No.”
He says his next step is thinking about getting out of trucking altogether and applying to work at Home Depot or McDonald’s.