Port activity slowdown in Southern California hits jobs and local economy

Southern California’s major ports are experiencing a sharp decline in cargo traffic, largely due to the tariffs on Chinese imports.

Once the busiest gateway for over a third of US container imports, Los Angeles and Long Beach ports are now seeing fewer ships and lighter loads. Goods worth an estimated $130 billion entered the US through the ports last year.

However, last month saw a decline in container movement from the Southeast Asian country. Dozens of container ship sailings from China were canceled, and import volumes dropped 17% in early May. Retailers and manufacturers, wary of rising costs, are delaying or canceling orders for goods like furniture, auto parts and clothing.

Ripple effects on workers and local shops
The slowdown can be seen across the local economy. Truck drivers now struggle to find even a few loads a week, cutting deeply into earnings. Dockworkers get fewer hours of work, while part-time workers often receive no jobs at all.

Local restaurants and repair shops report a 15%–20% decline in sales as port-related workers reduce spending. Warehouses meant for quick distribution are now being used for long-term storage, further reducing the demand for logistics labor.

Tariff cuts offer little relief
While the US recently reduced tariffs on Chinese goods from 145% to 30%, officials say this has not led to a meaningful recovery in port activity. Many importers still find the new rate too high to resume normal operations. 

Added threats of 50% tariffs on European Union goods have further dampened business confidence. 

With over 900,000 regional jobs tied to trade and logistics and nearly $500 billion in economic output at stake, Southern California’s port slowdown could have lasting national consequences.