Long Beach, among the largest trade hubs in the world, is again finding itself at the center of global economic upheaval as the Trump Administration this week announced steep new tariffs on most imports to the United States.
In 2018, during Trump’s first term, the Administration imposed tariffs on various products from China, the largest customer of the Port of Long Beach.
This time tariffs were imposed across the board, to every nation, after manufacturing moved to other countries in the South Pacific in the years after 2018. Vietnam, for example, was hit with a 46% increase in tariffs this week — even higher than China.
Long Beach lost 20% of its imports six years ago, but gained roughly 10% in trade business with Vietnam, now its second-largest trading partner, said Mario Cordero, executive director of the Port in an interview Thursday.
Mexico also expanded manufacturing and port facilities, notably surpassing China as the top source of imports to the United States in 2023.
This time, economists say, no matter where you buy, prices on many products will likely increase.
Long Beach as a whole has much at stake, Cordero and others said this week.
The Port of Long Beach is the nation’s second-largest by cargo volume, and Los Angeles is the largest. China accounts for 70% of the Port’s total imports, with top products including crude oil, electronics, plastics, furniture and clothing.
The Port itself doesn’t have a huge workforce, but thousands of local jobs are directly connected to its operations, including dockworkers, and those in construction, transportation and logistics.
The Port also generates millions in revenue for the city as a whole. Last year, it contributed nearly $26 million to the city’s Tidelands Fund — which is used for a number of high-value projects along the coast.
Mayor Rex Richardson issued a statement on Thursday warning of impacts to jobs, business opportunities and strain on the local economy.
“History has shown us that no one wins in a trade war,” he said.
Congressman Robert Garcia, a Democrat who represents Long Beach, echoed that, saying the Administration is “causing pointless suffering.”
The Trump Administration says it imposed the new levies to make up for massive trade deficits between the U.S. and many of its trading partners. Officials say they hope this will lead companies to create more manufacturing jobs in the United States.
“Just as a nation that does not produce manufactured products cannot maintain the industrial base it needs for national security, neither can a nation long survive if it cannot produce its own food,” the White House said in a statement.
Local impact
In the short term, the Port of Long Beach likely won’t see dramatic impacts because shippers moved goods at a record pace to start this calendar year. January alone saw a 41% year-over-year jump in cargo movement.
The impact may come in the midterm, especially due to the broad nature of the tariffs and an already inflation-weary consumer base.
The local port’s top five customers all include countries with the steepest trade deficits with the United States, and as a result, the steepest tariffs:
- China is being assessed 34% on top of previous tariffs
- Vietnam: 46%
- Thailand: 37%
- South Korea: 26%
- Taiwan: 32%
The 10% tariffs are expected to be enacted on Saturday, April 5, and the additional levies for those with higher tariffs are scheduled to be enforced starting April 9.