|
THE proposed tariffs recommended by former president and Republican presidential nominee Donald Trump could "change the landscape for the future" of the Port of Los Angeles, the port's executive director Gene Seroka said recently during the monthly presentation of port volumes.
Should he be re-elected this November, Trump is proposing a 10 per cent tariff across all imported goods and a 60 per cent tariff on goods from China for the more than US$3 trillion worth of goods coming into the United States, according to Mr Seroka.
Despite this prospect, the port of LA has been "pretty nimble" after Mr Trump first issued tariffs on Chinese goods in the spring of 2018 when he was in office, Mr Seroka said.
Since that time, the Californian port has been seeking to diversify its business portfolio. When 2022 ended, 57 per cent of the port's business portfolio was related to China. By the end of 2023, that portion fell to 53 per cent and now, in the midpoint of 2024, that percentage is in the low-to-mid 40s, reports Greece's Container News.
"That means that we picked up traction in Southeast and South Asian nations, and we've done more for cross-border activity in and out of Mexico and the manufacturing and retail communities there. We'll continue to do just that," Mr Seroka said.
Should additional tariffs be enacted; overall North American port volumes may stay fairly consistent and rise and fall according to macroeconomic factors such as consumer demand.
However, like the port of LA, North American ports could see a change in the mix of originations as shippers continue to diversify their sourcing and seek out manufacturing in countries beyond China, such as South and Southeast Asia, Mexico and Central America.
Matt Priest, president and CEO of Footwear Distributors and Retailers of America, echoed Mr Seroka's remarks as a guest of the port's July 17 media briefing.
Because footwear is largely imported, with over 90 per cent of volume coming from China, Vietnam and Indonesia, the industry is keeping an eye on any proposed import tariffs, especially those proposed by Mr Trump.
The American footwear industry pays about US$4 billion a year in tariffs and imports 2.5 billion pairs of shoes every year, according to Mr Priest.
"The former president is putting out a lot of proposals that would fundamentally alter the approach to trade, or at least continue the trends that he put forward in his first term. So, we now have a record of policy decisions behind us to help inform us on how to best navigate that scenario for us as an industry," pointed out Mr Priest.
Although the November elections are months away, the possibility that Mr Trump could be elected is prompting the footwear industry and other industries to ship goods ahead of time before any would-be tariffs kick in.
https://www.shippingazette.com/news?news_id=9240700000922
|
Back:
Next:
