President Donald Trump’s trade policy of using tariffs to extract concessions from other nations could cause a slowdown in traffic at the Port of Long Beach and raise prices on common goods coming through the port from China.

Trump signed an executive order Saturday slapping tariffs on a trio of countries “to hold Mexico, Canada and China accountable to their promises of halting illegal immigration” and stemming the flow of drugs into the U.S.

The 25% tariffs on Mexican and Canadian imports have since been delayed for at least 30 days after the two nations reached agreements with the U.S. Monday to direct additional resources to their borders, but a 10% tariff on Chinese goods went into effect today.

That tariff is uniquely positioned to have the biggest effect locally.

Long Beach  “does not do much trade” with Canada or Mexico, but China accounts for about 62% of the goods imported through the port, spokesperson Lee Peterson said.

After Trump first targeted China with tariffs during his term in 2018, the Port of Long Beach saw an 8% drop in overall imports from 2018 to 2019.

Trade eventually recovered, reaching record levels in 2024 even as the Biden administration kept most of Trump’s tariffs in place and levied more last May on Chinese goods, including semiconductors and electric vehicles.

But experts say Trump’s moves have set off new uncertainty and conflict: China’s Ministry of Finance, for instance, has announced retaliatory tariffs against the United States set to take effect on Feb. 10.

For the average consumer, Trump’s tariffs will drive up costs, and uncertain trade negotiations also discourage investors and new businesses looking for a stable trade environment, according to Erica York, senior economist and research director with the Tax Foundation.

“This is highly unusual and highly harmful,” York said. “Even if the tariffs aren’t imposed, if they’re just kind of threatened and then canceled at the last minute, that still has an economic cost.”

Tariffs are paid by the importing company, raising the price on foreign goods. That rise in business cost is typically passed on to consumers and economists view it as a tax increase.

Top Chinese imports coming through the Port of Long Beach include furniture, machinery and parts, electronics, plastics and clothing.

The 10% tariff on Chinese goods equates to an additional $172 in taxes on the average U.S. household, according to York.

On Tuesday, State Sen. Lena Gonzalez, who represents Long Beach, announced the introduction of a Senate Bill that aims to study the impacts of tariffs on businesses, affordability, workers and the state economy.

“The actions taken by the Trump Administration to raise tariffs will not protect American business as he claims – they will actually raise prices of consumer goods, increase costs for our small businesses, and reduce employment opportunities in key sectors of our economy,” Gonzalez said in a statement.

If passed, SB 263 would direct specified state agencies to study the impacts of tariffs imposed by the U.S. government and potential retaliatory tariffs imposed by other nations.

The port and the surrounding trade infrastructure are major employment drivers in Long Beach, accounting for about 1 out of every 5 jobs, according to the port’s website.

Congressman Robert Garcia, D-Long Beach, who met recently with Port of Long Beach leadership about the tariffs, called Trump’s trade policy “a really irresponsible approach.”

“Certainly as a port city we should be very concerned,” Garcia said.

Despite the fluctuating trade policy, Port leaders do not anticipate changing long-term plans, said Port of Long Beach CEO Mario Cordero.

Last July, the port broke ground on a $1.6 billion project that aims to double the size of its rail yard and operate more efficiently by helping it get cargo on trains quicker.

The first of the 10 individual projects is slated for completion by 2027 and the last by 2032.