Rush to Beat Tariff Deadlines Raises Volumes at West Coast Ports

Tuesday, Apr 1, 2025

The rush to beat tariff deadlines in March (and now April) led to the Port of Los Angeles’ second-busiest February on record. International shippers moved 801,398 Twenty-Foot Equivalent Units (TEUs) through the Port of Los Angles has handled 1,725,643 TEUs so far in 2025, 5.4% more than 2024.

“Many retailers and manufacturers have been importing their products through Los Angeles earlier than usual as a hedge against tariffs,” Port of Los Angeles Executive Director Gene Seroka said at a Port of Los Angeles media briefing. “Given the substantial inventory already here, and the uncertainty of tariffs, it’s possible we could see a 10% volume decline in the second half of the year.  Here in Los Angeles, we will continue to look for new opportunities to bring more business through our gateway.”

“There is tremendous uncertainty coming from Washington, but companies are not just holding their breath waiting for the other tariff shoe to drop, they are actively ordering up more equipment to beat the price increases once the trade war sanctions jack up the cost of the goods and materials they need to even higher levels,” said Christopher Rupkey, chief economist at FWDBONDS.

Paul Brashier, vice president of global supply chain for ITS Logistics, said companies started pulling trans-pacific inventory ahead as early as late November.

“Not only was inventory from China pulled ahead but all transpacific origins as there is a concern that there will be a wave of additional freight brought in as tariffs are announced,” said Brashier.

Orders for durable goods, items ranging from toasters to aircraft meant to last three years or more, increased 0.9% after advancing by an upwardly revised 3.3% in January, the Commerce Department’s Census Bureau said. Economists polled by Reuters had forecast durable goods orders would fall 1.0%.
Primary metals orders rose 1.2%, while those for fabricated metal products rebounded 0.9%. Electrical equipment, appliances and components orders jumped 2.0%.
Economists attributed the rise in orders for these goods to front-loading ahead of tariffs, adding that trade policy uncertainty and higher borrowing costs remained constraints for manufacturing, which accounts for 10.3% of the economy.
U.S. President Donald Trump has imposed a new 20% duty on all imports from China and 25% on goods from Canada and Mexico that are not compliant with a North American trade agreement.
Trump has fully restored 25% tariffs on steel and aluminum from Canada, Mexico, EU and other countries, and next week is set to announce higher U.S. “reciprocal tariffs” to match the duty rates of trading partners and offset non-tariff barriers. Trump also has said that he will soon impose sectoral tariffs on imported autos, semiconductors and pharmaceuticals.

 

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